m .....

IS&Tt^-CvJA;.

■■

«■ mT* -

A’; * . . ,

*l ‘.:»r

’IV-L ..i.' ■./ - , _

S.DK,^

new

"Pn^J

Jae* rebate f

Jr^i. isJU ... ’"

t--%- •. <i ;- -

&H&80gei

&***» fewci .- ... i 1&? -fciSSS**. •:_-. -.-•

S’ t-irar s?i r-* .-, -

f;j^ A ..:,',/

g-^afc 4jfc^r ...- - . .&' ■*&=■ ^d=-.-7- • -- . ..- -

.-•- •

Vi Li * .. --^ afe^^assA-^'

lr.-i :_>.-

- .-

i# H’W'jK'-. ■*•:;■.•

M p fTr ■'„• P\iz

Qn outline bn jj

=S»n -.> - avj iiE-.~r-:--a- - •_ aTi?W>33'.l3.. r^.T-r^---- ;• -

4 '^Vj*. V

■. -

5^^.=. --

h .vute w.:.- •• atrMv^ - -> EtVjrf--*-: :-J-.- - 1

&*** >•■■■ - j > ....•'

; j_5f

•-

jR vows to ff-rhi de-s. f

r* ••■■■■•■•

t J • *“r

’'f-VV - -

.*• ’.- • '

•.•.’.■y ’ ■- F'J=; •

?.%. ■esT:«ri<‘-'

i *£*&•-■ ■

-*- ■*

V. i £"> ' r' • ' 1

jL*r >’ • i?r.

v- r

i,: n -TV

TV •!

- ■

*j-*r *"•

*J<*V ’

.* /■■.•»". -*5 V '

»,-. *oa 3^>' • ^

> f-

&*y-

,-v *r , - £

FINANCIAJL Times

Wednesday march io 1999

NATO

of Poland, Czech republic and Hungary this week gives new urgency to efforts to upgrade military apparatus

Western companies race for defence prize

reooan!2nnnthat,rt ^)een tar9et‘n9 central and eastern Europe in I Wfl 58 ^marketplace of the future, Alexander

and thp pvooh Domo'Tow ^ writers examine preparations in Hungary and the Czech Republic for accession to Nato

Iexe^uSve om w^f °D 3 day-ttMlay countries - have neeLs of old

em defence companv To' thi, MlGs wbich ^ tfi£Gcult to

rpuA . . * uy- 1 0 this Cnd. tllP npn* fnaintaih knnui^A rtf

The prize is supplying for- mer Warsaw Pact countries with their next generation of weapons. But it is still some way off.

Western weapons makers have been circling central and eastern Europe since the end of the Cold War.

They have been seeking to build contacts in governments and companies with the aim of being in a strong position when decisions on new contracts - especially aircraft purchases - are made.

Tbe admission or Poland, the Czech Republic and Hungary to Nato this week will give new urgency to the three countries' efforts to upgrade their old Soviet bloc military apparatus so that it is compatible with that of other Nato allies.

However, Nato has warti> it clear it does not expect new members to bust fragile budgets with purchases of shiny new weapons.

Instead, it wants them to begin by improving printing military infrastructure.

“We’ve said they should focus on the software before the hardware," a Nato official says.

“The important thing is that we are able to interact

with them on a day-to-day

basis."

To this end, the new members will get access this week to a S1.5bn fund under Nato’s security investment programme.

The money will be used initially for purposes such as improving secure communications and other nuts-and-bolts requirements for a working military alliance.

Nato's next priority will be upgrading air defence systems of the new members, with equipment including modem radar.

New members will aion be helped with programmes to reform the structure of armed forces, in which Soviet-era tanks and artillery predominate, to make them more flexible and deployable in keeping with Nato's modern-day missions such as in Bosnia.

All this will produce important, though perhaps low-profile business for defence companies, particularly in the area of “C41" - command, control, communications, computers and intelligence.

But the plum to which most of them are looking forward is the replacement of ageing Russian-made aircraft. All the new Nato entrants - and several other

countries - have fleets of old

MiGs which are difficult to maintain and, because of financial constraints, are mostly in the air for small numbers of hours each year.

The Czech Republic and Poland are at the top of most western companies' lists. Boeing, British Aerospace. DaimlerChrysler Aerospace. Dassault, Lockheed Martin and Saab have all been scrambling for footholds there, as well as electronics

suppliers such as GEC-Marconi.

The companies are conscious that for tbe buyers, aircraft orders are means of building high-technology industry and skilled jobs.

Good industrial offset packages, involving technology transfer which builds aerospace and other industries, will be just as important as the capabilities of the aircraft.

Prague is expected to issue a letter this month inviting bids to supply 36 fighter aircraft at an estimated cost of $1.6bn. to replace 40 MiG-21s which are old and thought to be in a poor state of repair.

Candidates are likely to be the BAe/Saab Gripen, Boeing's F/A-18, Dassault's Mirage and Lockheed's F-16.

TURNING POINT IN COUNTRY’S HISTORY

Poland’s accession: an end to uncertainty

By Christopher Bobfatski ki Warcaw

When Poland joins Nato on Friday at a ceremony in the US town of Independence, Missouri, it will mark a turn- ing point In the country’s often tragic history, after centuries of turbulent rela- tions with powerful and predatory neighbours.

It will also bring a wel- come end to the uncertain- ties which have faced Poland's defence planners, left without allies after the collapse of the Soviet- dominated Warsaw Pact in the early 1990s.

From now on military strategy, arms decisions and training requirements will be defined by Nato military doctrines.

in the first instance, the demands Nato is making of Poland’s dilapidated armed forces are modest and fit well within tbe limits of its defence budget. This is set this year at around 12bn zlo- tys ($3.05bn) or 2.1 per cent of gross domestic product

Around 11.5 per cent of the total budget will be spent on tasks related to Nato mem- bership, including the adap- tation of MiG-29 and Sukhoi fighters to enable them to fly in Nato airspace.

The main challenge, ini- tially, has been to ensure that communications equip-

ment is in place to allow contact with Nato command and to permit Polish units to identify Nato aircraft. Poland will also be concen- trating on bringing several units up to a standard at which they will be capable of taking part in Nato operations abroad, such as the possible intervention by the alliance in Kosovo.

In coming years the num- ber of troops trained and armed to Nato standards will grow. Other units will be rel- egated to the status of terri- torial defence forces which are much cheaper to main- tain.

The bulk of spending on new equipment will be put off untfl next year and the years following. However. US and European defence companies such as Boeing and British Aerospace are already competing fiercely: contracts for new fighter air- craft could be awarded by the end of this year, says Romuald Szeremetiew. the deputy defence minister.

The Poles, for their part, are insisting that any deal will have to include commit- ments by the suppliers to take part in tbe privatisation of the country's ailing arms industry. They also want successful companies to place work with local indus- try under, “offset" agree- ments.

Nato membership is revol- utionising Poland's armed forces. Their numbers have been cut from 460.000 at the beginning of the 1990s to 240,000 today. Slowly surplus military bases and equip- ment stockpiles are being reduced and the officer corps cot back to reflect the pres- ent size of the armed forces.

Tbe main change, though, the introduction of Nato standards in command and logistic systems, will have wider implications. Bronis- law Komorowskf, head of parliament's defence com- mittee. says Poland's defence establishment will be trans- formed into a force for modernising society as a whole. This will have conse- quences in coming years as officers and men with lan- guage skills and training up to Nato standards return after military’ service to , civilian careers. j

Oddly, Poles appear to have grown lukewarm about the historic accession to the western military alliance now that it is imminent, per- haps because of the financial cost of the exercise. Almost : 40 per cent of those asked in a recent poll how they felt about Nato membership sud they were indifferent. There is little outright opposition, however, and those in favour stiff number just over 50 per i cent

POLISH FOREIGN MINISTER URGES FURTHER EXPANSION

Keep looking to east, Geremek tells Nato

By Stefan Wagstyl and Christopher Botiradti to Warsaw

Nato must keep its doors open to further eastward expansion following this week’s entry into the alli- ance of Poland, the Czech Republic and Hungary, or else risk the creation of a new Iron Curtain, according to Bronislaw Geremek, the Polish foreign minister.

Mr Geremek, in an inter- view with the FT, said increased economic coopera- tion would be central to building bridges in central and eastern Europe between Nato members and non- members in the former Soviet bloc, including the three Baltic states and Slo- vakia, Bulgaria and Romania.

“The Iron Curtain could reappear, albeit in a differ- ent geographical location, and cut Europe in two once again " he said. It would be dangerous for the peace and stability of Europe to accept

that former Soviet republics

- as opposed to the blocs former satellite states such as Poland - could never jom Nato.

Geremek: economic dfrnension

Mr Geremek said eco- nomic links with non-Nato countries could best be built via the European Union and the North American Free Trade Agreement (Nafta).

Poland is thought to be keen to encourage the devel- opment of an economic dimension to Nato itself, although it is anxious such proposals should not be seen simply as a request for money from wealthy west- ern members of the alliance.

Mr Geremek said for Poland, Nato entry was the -real end of the second world war". Poland had been

reunited with Its former war- time allies, from whom it had been separated by the Yalta accord. “By joining the world’s strongest military alliance, Poland gets not just security but also a sense of security which is also very

important."

He warned current EU member states against exces- sive delays in accepting Poland and other candidate countries. The main problem was a weakening of the polit- ical will in favour of enlarge- ment. with EU countries concentrating on their own national interests and not on ! the wider European interest i

The most important sign . of this “nationalistic reac- 1 tion to the process of unify- 1 ing Europe". Mr Geremek said, was the recent electoral success of Austrian ultra- nationalist Jorg Haider in regional polls in Carinthia. Mr Haider takes a tough stand against EU enlarge- ment warning that it would threaten johs in Austria.

“1 hope this is an isolated case. I hope that the launch of the euro will create a strong European conscious- ness," said Mr Geremek.

Agrowift^4lilafH»

New members

New markets

Czech nepotic	Now	Potand	Brigaie Rmwnfe	Stankb
1M7 tSKTm defenra	seeem	OLltM	S33BR- - UBh	Ml 4m
era 5B.UB «un zmjsso 1013m ns^see 4&cn M Induing ndudhg todufing Mdng tncfiag Mafig 1 1 3G flOO 27,500 141,000 4*300 133300 tSJBOB castripto corccrtpte conscripts nftXripta Coneovb uanulHta
nM Ken	ns	1,727	VOS 1,233	478
E9™	840	1,580	1.744 1791	382

GVWM;.’5-

manbers

llui

now |

memftere

DBWUBG

w*n*At-

GZffiftHBWBIJC

109 he. 114 kc. 325 Inc U6-21. 1*6-21. IK-21.

SU-ZZ UK-28 HG-Z3, 1*6-29. SU-22

Swra. ES TIM Mbq> Mm I

Boeing last year enhanced its position in this race by spending Kc95Qm ($27. 5m I on a 34 per cent stake in Aero Vodochody, a state-owned maker of light aircraft, which makes the Czech L-159 fighter-trainer and also supplies parts for Boeing civil aircraft.

Poland has taken the first step in modernising its air force, but it is a move intended to put off a competition for new purchases.

In February, it signed a contract with Daimler-

217 Ht 362 Inc MK-tf. UG-Z1. UK-23, M&-23.

IK-29. lflG-29 Su-22,

511-25

Chrysler Aerospace (Dasa) to upgrade 22 MiG-29 aircraft to Nato standards.

Dasa had already done the same to 23 Mlg29s inherited by the Luftwaffe from East Germany, and is in talks with Hungary, Romania. Bulgaria and Slovakia for similar deals - the Czechs have sold their M1G-29S.

BAe established a strong foothold last year when it made PZL Mi elec, a Polish aircraft manufacturer, a supplier of airframe parts for its Hawk jet trainer.

The tendency of defence contracts to be long drawn-out affairs suggests decisions by both Prague and Warsaw on contract awards may still be years away. But marketing efforts by defence companies are likely to gain momentum.

Sir Charles Masefield, vice-chairman of GEC and former head of the UK ministry of defence's export sales organisation, says that the expansion of Nato “is generating much more rapid requirements than anybody thought".

Though the US air force has been offering to lease second-hand fighters, Lockheed Martin also sees business coming from small beginnings. “We recognised that the number one need was to build domestic infrastructure, while also needing items such as fighters,” says a Lockheed executive in Fort Worth, Texas, home of the F-16.

“We see this region as a very significant market place of the future."

UK’s Nato plans, Page 8

Solana proposes Balkan aid deal

By David Buchan

Javier Solana. Nato secretary general, yesterday proposed that the west offer the Balkan region a package of political and economic benefits, as well as military security, in what he called a “partnership for prosperity".

“Without a comprehensive approach to the region's problems, we will never get beyond treating its symp- toms," Mr Solana told a Lon- don conference on Nato’s 50th anniversary.

The Nato chief said the starting point had to be Bel- grade’s agreement to a Nato- led peacekeeping force to oversee an effective settle- ment in Kosovo.

If the west could get agree- ment on this, “we should give a wider signal to the Balkan region of its place in Europe politically and eco- nomically", he said.

Mr Solana gave no specif- ics about his proposed "part- nership for prosperity", but it is understood to include some of the offers which European Union leaders have put to President Slobo- dan Milosevic in recent days.

The EU has said if Bel- grade accepts a Nato-led force, it is ready to reverse its Kosovo-related transport and financial sanctions on Yugoslavia, and provide a Kosovo aid fund that could indirectly benefit Serbia,

DeB

EERS

A DIAMOND IS FOREVER

ABRIDGED AND AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 1998

Attributable

Beers linked units

♦ Headline earnings down 39% in 4 Dividends for the year down US Dollars to $639 million and 22% in US Dollars (80.2 cents) 26% in Rand to R3 529 million and 6% in Rand (R4.70)

PRO FORMA COMBINED INCOME STATEMENT

Turnover

Diamond account Investment income Interest income

Prospecting and research Interest payable Exceptional items Other

Net income before taxation Taxation

Net income after taxation Attributable to outside shareholders

Own earnings

Retained earnings of associated comp Current trading Exceptional and non-trading

Total net earnings

Retained as

Non-disoibutable reserves Distributable reserves

Dividends on linked units

Reconciliation of total net earnings to headline earnings

Total net earnings as above 617

Exceptional items as above Net surplus on realisation of fixed assets and investments less provisions against loans (I I) Exceptional and non-trading hems of associated companies 33

Headline earnings 639

Rand millions
1997	1998
29 280	24 845
3 871	3 237
1 061	1 267
279	158
5211	4 662
663	776
266	516
20
201	39
4061	3 331
1 148	1 005
2913	2 326
(94)	(256)
2819	2 070
1 852	I 526
936	(I83j
5 607	3413
2 822	1 459
884	142
*1 901	1 812
5 607	3 413
5 607	3 413
20
67	(67)
(936)	183
4 758 3 529
380	384
742c	539c
1476c	889c
1 252c	919c
252.0c	280.0c
248.2c	190.0c
500.2c	470.0c

US$ millions 1998 1997 4 492 6 418
585	849
229	233
29	61
843	1 143
140	145
93	58 4
8	44
602	892
182	252
420	640
(46)	(21)
374 es	619
276	405
(33)	205
617	1 229
264	6(8
44	220
309	391
617	1 229

Rand millions
1997	1998
46 649	51 914
337	541
4 309	8 009
51 295	60 464
5666	6018
23 691	25 420
21 599	28 23 f
353	372
4 551	5312
4 565	4 889
(14)	423
51 295	60 464
28 472	24 933
19 195	15 061
3 457	2 435
66 968	62 894

US$ millions
1998	1997
8 856	9 585
92	69
1 366	B86
10314	10 540
1 026	1 164
4 336	4868
4 816	4 439
64	72
906	935
834	938
72	(3)
10 314	10540
4 253	5 850
s 2 569	3 944
415	710
10 729	13 759
2 782c	3 619c
R5.B6	R4.87

Weighted overage fxmiber of linked units

Earnings, per linked unit

Dividends

Per linked deferred share [Interim: 96.0 SA cents (72 J3); Rnat 184.0 SA cents (f80.0)J Per depositary receipt (Interim: 1 13 US cents (I IJJ; Fmat 20.9 US cents (39J)J

384 380

97c 163c 1 6 1 c 323c 166c 275c

47.8c 51.8c

32.4c 51.0c

80.2c 1018c

R4.56 R5.53 Rand/US Dollar average exchange rates R5.S3 R4 JJ6

PRO FORMA COMBINED BALANCE SHEET

Capital employed Linked unit holders' interests Preferred and outside shareholders’ interests

Long- and medium-term liabilities

Represented by Fixed assets Investments Diamond stocks Stores and materials

Current assets Current liabilities

Market value of listed investments 4 253

Directors' valuation of unlisted investments 2 569

66 968 62 894 Net asset value 10 729

17 614c 16 309c Net asset value per linked unit 2 782i

R4.87 R5.86 Rand/US Dollar year end exchange rates R5.B6

DIRECTORS' COMMENT

The dffiaJt diamond marker candhfcns of dw fine haK of 1998 deteriorated tatar n die second ha# CSO sales for die year at USSJ 34S milfon were 28 per cent befcw die previous sales of US$1 M0 mBon and reaited in dehvy entidements to die CSO of 74 per can in [emg of the quota ananpmeno.

Read consumption continued to reflea varied economic cJrcumstancesL The USA performed panKutariy strong^, with vi increase in retail sales ol now per cent. Europe also saw growth in dollar terms of four per cent. These resides were, however, outweighed by poor resides from Japan {minus 19 per cent n dollars) and die South East Asian marfaea {minus 35 pa- cent in defers), so dal die overall global consumption was negative tadofarcerms for die second year to suxessian (1997 nwus fee per canard 1998 minus three per cent). China continued to grow (plus three per cent) aim at a lower ras dian previous years.

The mood to die industry has improved tinea the begtomng of 1999. based on die strong Christmas season m the USA. die rundown of nocks, partndariy of rou^L in the cuttkig amras as a resuh of die CSCTs restneme sales poficy over die bst eighteen morths and a reduction in supply from Angola and the Democratic Republic of die Congo, and die renewal of die CSQffiuss&n sales contract for a further three year period exprtag on 31 December 2001.

The CSO fas responded cautiously to this Improved sentiment hi policy conumes io be to keep supply under control so dot any remamg excess pofehed stocks can be moved dvtxgi to die market. Whde die first two signs of the year have been higher than those of (998, die recovery at this stage Is too recent to justify confidence dot the market is over its (ffieulties. The reduction of stocks in die trade plpefine is positive r reborn to CSO ales operations for 1999, but it will be dffioJt for die CSO to increase its sales signSkandy unless there is an improvement in the Japanese and South East Ason mad markets, or new markets are developed lar those categories of demands which were sold into dm r^gfan prior to July 1997.

Mowing approval by deferred shareholders cf De Beers Consoidated Hues Limited (DBCM) an 15 January 1999 of the DBCM dement of the transaction for die tfoposai by De Beers to Anglo American Gxponbon of South Africa United (AAQ of their InteresB to various fisted and unisted companies and Joint vemures, DBCM and De Been Cernawy AG were issued with tetters of enriement to 15 993 SIS and I 855 2IB new AAC shares (or dares in Angfo American pic) rwpectivdy.

It b expected that die pubficaoon of the fisting paracubn of Ang|o American pic wfl ocnir towards die end of Apr! 1 999 at which dme fonher detafis w8 be posted toDe Bern Inked in* holders for ^formation.

DIVIDENDS

Both the DBCM final tfividend (No. 158) of I8t0 SA cere per finked deferred share and the Centenary Depositary tfindend distribution (No. 18) of 20.9 US cents per depositary receipt are due to be paid on Wednesday. 26 May 1999 to finked mil holders registered at the dose of busmen on Friday. 26 March 1999. The ngstsrs wfB be dosed from 27 March to 3 April 1999, The fiif condtiom relating to the payment of the dbidends may be inspected at the offices menaoned below as wel as the offices of the South AJran transfer secretaries and United Kingdom registrar. ]

Copies of !he prowjwwf annual financial statements and ckvidend notices wdf be posted to linked an a hidden an or about 1 1 A torch 1 999 and wtf also be available from the foBotwig officer

DE BEERS CONSOLIDATED MINES LIMITED DE BEERS CENTENARY AG

(incorporated in die Republic of South Africa) (Company Registration No. i 1/00007/06)

36 Stockdale Street Kimberley. South Africa

17 Charterhouse Street London ECfN 6RA, England

(Incorpora led under the bws of Switzerland)

Langensandstrasse 27 CH-6000 Luzem 14, Switzerland

The preliminary results may be accessed on the Internet through an independent service provider at hap:f/vmw.edata.ccLza

FINANCIAL TIMES WEDNESDAY MARCH 10 1999

WORLD TRADE

UNCTAD REPORT ON GLOBAL ECONOMY

Rich ‘must be ready to pump in liquidity’

•tatra MarconPs Helios 1 mffitary observation ssteHte- Europeans stand a chance despite Japan's desire to award work locally AP

European satellite companies circle over lucrative Japanese surveillance project

By Frances Williams in Geneva

Tbe world's rich nations should consider direct injec- tions of liquidity into devel- oping countries if further financial instability threat- ens a global recession, says a report from the United Nations Conference on Trade and Development

As a consequence of finan- cial turmoil in Brazil, world growth is set to be at the low end of gloomy forecasts by the International Monetary Fund, the Organisation for Economic Co-operation and Development and others last year. Growth this year could halve to 1 per cent from an estimated 2 per cent in 1998 and 3.2 per cent in 1997.

The 1999 outlook reflects continued stagnation in Japan, slowing growth In tbe US and Europe and possible recession in Latin America. Though Asia is expected to

By ARce Rawsthom in London

Record companies have become concerned about the growing availability of inex- pensive. easily operable internet recorders, such as the Rio. a $200 product devel- oped by Diamond Multime- dia in California.

The music industry is try- ing to find ways of curbing the rising use of portable recorders that can be used to store and play pirated music posted on unauthorised internet sites. The industry' would like the recorders made able to record only authorised material.

The Recording Industry Association of America fRlAAj. the body that repre- sents US record labels, mounted an unsuccessful law suit last autumn to stop the Rio from going on sale. Internet piracy is already a

do better than in 1998. this is mainly because the econo- mies most affected by the Asian financial crisis have ceased to shrink.

The downside risks to the world economy have also become more acute in recent months. Unctad warns of the possibility of a sharp correc- tion in equity prices in Industrial countries coupled with a rise in risk aversion, and hence further declines in capital Hows to emerging markets.

The report, prepared for the Association of South- East Asian Nations (Asean). says policymakers in the industrialised world hold the key to global economic recovery, but that imagina- tive responses are needed to combat the effects of shrivel- ling financial flows.

While there Is plenty of scope in the US. the Euro- pean Union and Japan to use

serious problem for the music industry. The RIAA and other bodies fear that the availability of devices, such as the Rio. will encour- age even more consumers to download pirated music.

Since the RIAA lost its case, a number of other elec- tronics manufacturers have revealed plans for similar products. The Yepp. a credit card-si2ed device, will be launched this summer by Samsung of South Korea. Creative, a Singapore-based company, plans to introduce the Nomad, w’hich will be the same size as a cigarette packet and will retail for less than $200.

Having accepted it cannot stop such derices, the music industry is trying to ensure they cannot be used to breach copyright.

The Secure Digital Music Initiative (SDMT). an alliance

fiscal expansion to combat economic slowdown, .this may not he sufficient on a global scale if the crisis deepens, the report says.

It suggests instead that the EU and Japan “recycle" part of their current account surpluses to cash-starved developing countries through official channels “to raise demand, imports and growth". This could be done in three ways:

• debt relief through a rapid write-off of unpayable offi- cial and multilateral debt;

• regional aid plans to pump binds into the crisis- ridden Asian economies;

• a substantial allocation of Special Drawing Rights to developing countries and economies in transition from communism.

Global Economic Conditions and Prospects. Unctad. Palais des Nations, CH-1211 Geneva 10

of RIAA members and tech- nology companies, has set up a group to map out guide- lines whereby the software specifications of portable devices will be tailored to prevent them recording and replaying unauthorised material.

At present, most of the songs posted on the internet are illicit versions of copy- righted material by popular acts, such as Lauryn Hill or Robbie Williams. However, more authorised material will become available online when tbe record companies launch their own internet sales systems this autumn.

The SDMI working group, chaired by Jack Lacy, an executive with AT&T's a2bmusic subsidiary, with representatives of Sony Music and Matsushita, hopes to have agreed the guide- lines by the end of June.

Michiyo Nakamoto

on the contest for a $1 .6bn contract

A group of western busi- nessmen gathered at the Liberal Democratic party’s headquarters in Tokyo one day last month. Representing Europe's lead- ing aerospace companies, they had come to market sat- ellite technology to Japan's ruling LDP and government officials. At stake is a Y200bn (S1.6bn) programme to launch four surveillance satellites in 2002.

For Aerospatiale. Matra Marconi Space, Alcatel Space. DalmlerChrysler Aerospace and Thomson CSF, all represented that day. the meeting was a cru- cial opportunity to press the case for European participa- tion in what could be a lucrative business.

But it will not be easy. The government, which has allo- cated initial development funds in its 1998 supplemen- tary budget, is hoping to rely on domestic technology to develop and build the satel- lites.

“This is a problem that has to do with Japan's secu- rity. so basically we plan to develop and produce the sat- ellites ourselves." says one official.

The National Space Devel- opment Agency of Japan (Nasda). which has guided Japan's national space devel- opment effort, has launched a number of its own satel-

lites and already bad a plan in place to launch its Advanced Land Observing Satellite (Alos) in 2002. This development work is expec- ted to form the basis for the new satellites.

Amid the general eco- nomic gloom, domestic com- panies such as NEC and Mit- subishi Electric will be desperate to claim a share of new business from a client that has a reputation for offering attractive margins.

But Japan's limited experi- ence in the satellite busi- ness. the tight schedule the government faces and cost considerations provide an opportunity' for foreign com- panies with proven exper- tise.

The plan to launch four satellites was put together hastily last year amid the panic after North Korea launched a rocket over Japa- nese territory. The Japanese government was embar- rassed by its dependence on US military intelligence and clear lack of viable options in case of a missile attack.

The government decided to strengthen its intelligence capabilities by launching the satellites as soon as possible. Since Japan is committed :o the “peaceful" use of space, the satellites are tc> be used for commercial and scientific purposes as well as for mili- tary surveillance.

However, if Japan is to keep to its schedule of launching the satellites in 2002. it will almost certainly have to rely on more than

home-grown technology, “it is possible for Japan to develop the satellites hut there are questions of cost and delivery, which will put foreign companies at an advantage." admits a gov- ernment official.

It takes four years to build a satellite from an existing design and although Nasda has started work on the Alas, there is no guarantee it will be ready by 2002.

Furthermore, it would be “cost effective to rely on some already developed equipment" and would make for a more reliable pro- gramme “to have experi- enced contractors on board," says Matra Marconi Space, a prime contractor for the Helios satellites, which claims to be “the leading noc-L'S company in earth observation."

More crucially perhaps, there is little guaran- tee that a Japanese- made satellite could perform the surveillance functions Japan wants.

It wants the satellite to carry 2 sensor that is able to observe objects on earth as small as 1 metre. There are few companies able to pro- rice that kind of resolution.

Nasda is developing a sen- sor with 2.3-metre resolu- tion. but this is only planned for completion in 2003. Lock- heed Martin, the US com- pany. is launching Ikonos. a commercial satellite with a resolution of Slczn. next month.

Helios-I. a .joint effort between France, Italy and Spain launched in 1995. is believed to offer a resolution of 1 metre. Helios-E, sched- uled for launch in 2001, is expected to provide a resolu- tion of 50cm, although there are questions about German funding for this FrancoGer- man programme.

Although Nasda has launched four information- gathering satellites in the past, the last one, in 1996, broke down within a year.

Furthermore, while the official stance is that the sat- ellites will he developed and built with domestic technol- ogy, “there are international political considerations to take into account," admits one government official.

“We are making a com- mercial satellite so we will have open competition, according to WTO rules," proclaims the LDP's Mr Nakayama.

Lockheed Martin, which has 40 years experience in the field, would be die nat- ural candidate to participate, given the close defence ties between the US and Japan.

However, the LDP appears to he more actively in touch with the Europeans. Mr Nakayama has not yet been visited by a US delegation.

In spite of its stated inten- tion to use domestic compa- nies. there are signs of inde- cision. “It might be difficult to meet oar goal of choosing the contractors by the end of the fiscal year fin March]," says a government official

S Korea adjusts steel prices

By John Burton in Seoul

South Korea's Pobang Iron & Steel (Posco) yesterday said it still planned to offer dis- counts to domestic consum- ers who buy huge volumes of steel, despite a decision to end subsidised prices for local buyers.

Posco, the world's second largest steelmaker, will abol- ish its dual-pricing policy, under which it supplied steel to export manufacturers at rates lower than those offered to foreign buyers, because of a threatened trade dispute with the US.

Analysts said the move had also been expected because the privatisation this year of state-run Posco would allow it to improve earnings by charging market prices to domestic consum- ers. Posco reported a record profit in 1998 because of higher overseas sales.

The system of subsidised prices was introduced in the 1970s to boost export compet- itiveness by offering manu- facturers lower prices for steel, petrochemical and tex- tile materials. Posco supplies about 75 per centof domestic steel demand.

The reduced steel prices were largely based on raw material costs, without tak- ing into consideration for- eign exchange rates and overseas steel prices.

US steelmakers have com- plained the dual-pricing sys- tem violates World Trade Organisation rules on subsi- dies. Robert Fisher, the .US deputy trade representative, told officials in Seoul last week that Washington was concerned the dual-pricing system was causing a sharp rise in steel exports to the US. He said Korean steel exports to the US rose 27 per cent in January from Decem- ber, while steel shipments from Japan. Russia and Bra- zil fell. Han Duck-soo, South Korea's minister of stale for trade, said exports to the US were expected to fall this year as demand elsewhere rose.

Music industry seeks to curb internet recorders

INTERNATIONAL

UK presses Sierra Leone peace initiative

By Quentin Peel in Abuja

Tbe British government yesterday urged the demo- cratically elected president of Sierra Leone to sue for peace with the rebel forces that have terrorised the impoverished west African state for the past five years.

Britain is offering the ser- vices of its frigate HMS Westminster, currently sta- tioned off Freetown, tbe Sierra Leonean capital, to

provide humanitarian assis- tance in the ongoing civil war, as a potential location for peace talks.

The initiative was launched yesterday at talks between Robin Cook, the UK foreign secretary, Ahmad Tejan Kabbah, the president of Sierra Leone, and Abdul Rahman Abubakar, the Nigerian president in Abuja.

It came as a detained rebel leader in Freetown, F oday Sankob. called for a truce

between his Revolutionary United Front and the Niger- ian-led west African peace- keeping forces.

Yesterday’s talks in Nigeria were intended to step up tbe pressure on Mr Kabbah to negotiate with the rebels, in spite of the brutal- ity with which they have waged the war and the lack of any clear leadership in the field. At the same time, both Britain and Nigeria insist they are maintaining

their support for the elected government in Sierra Leone.

The chaos in that country, whose only source of wealth is its diamond mines, cur- rently controlled by the rebel forces, has become a headache both for the UK. as the former colonial power and principal aid donor, and for Nigeria whose troops have been keeping Mr Kab- bah in power.

Tbe war is costing Nigeria about Sim a day. when the

country is in deep economic crisis and unable to service Us S38bn externa] debt. Nigeria has also lost up to 1.000 soldiers in the conflict.

Olusegun Obasanjo. newly elected to take over as civil- ian head of state from Gen Abubakar. wants to pull out of Ecomog, the west African peacekeeping force, to which Nigeria has contributed most of the troops. The pres- ent Nigerian government wants Britain to get more

international support.

Sierra Leone has also proved a political nightmare for Mr Cook, because of the involvement of the British company Sandline in break- ing a UN arms embargo to support the Kabbah govern- ment. allegedly with the knowledge of UK govern- ment officials.

The Foreign Office was sharply criticised by a par- liamentary committee for its involvement

Unscrambling the scramble for Africa

A century ago European nations were competing to carve up Africa, establishing spheres of influence that last to this day. But now the familiar pattern is starting to unravel, writes Mark Turner

When France and Britain met in St Malo last December and launched a joint approach to Africa, many observers doubted that more than a century of competi- tion for economic and politi- cal influence could suddenly be replaced by cooperation.

Yet this week Robin Cook, the British foreign secretary, and Hubert V&drine. the French foreign minister, are paying tbe first joint visit to Ghana and the Ivory Coast. In Abidjan, French and Brit- ish ambassadors to Africa will discuss how to put into practice (he St Malo call for policy harmonisation, infor- mation exchange and even joint representation where only one partner boasts an outpost.

The new message has yet to get through to everyone. Businessmen and diplomats from both sides of tbe divide in Africa remain as Joyfully suspicious of each other as ever, and take an almost childish glee in each other's difficulties.

This is well demonstrated by the underlying sense of competition which has char- acterised recent inroads by France into Kenya, the heart of British influence in East Africa, and a parallel British

push into the Ivory Coast.

The newly revamped Mai- son Franpaise in Nairobi - a temple to Parisian chic - is an eloquently high-profile testament to France's push for more influence In East Africa, and is home to large new regional development and research centres.

“We are promoting a real image of contemporary France," says Mehdi Drissi, the centre's energetic direc- tor. “ We promote our culture through plays, singers, uni- versity exchanges. The Alli- ance Francaise [language school] here has 5,000 stu- dents, making It second worldwide: only New York is ahead."

President Jacques Chirac underlined his country's move beyond traditional boundaries in no uncertain terms when nearly all Anglo- phone African leaders attended the recent France- Africa summit. France claims that although its commitment to French Africa Is as great as ever, it wants to move away from its old concept of the “back- yard” and take a more holis- tic view of the continent.

Half a continent away, the British are making a less col- ourful but equally vigorous push into the Ivory Coast

The csrve-up; A French caricature of the German chancellor Bismarck dividing Africa Eke a cake at the Berlin congress of 1885. Now Britain and France are nibbling tile-other's portions AKG

West Africa's most vibrant economy. The UK last year was the country's second largest investor, after France, with companies from British Airways and Framlington to Crocodile Machetes moving in over the past few years, and has been raising its profile with trade missions and fairs.

“We want to get away from the idea that somehow there are countries that are outside our interests in West Africa." said Tony Lloyd, the Foreign Office's minister tor Africa, on a 'recent trip to the country.

At the heart of each coun- try's efforts is a recognition that they could be missing

out on some big commercial opportunities on the other's patch. France and Britain fto a lesser extent) continue to dominate trade relations with their former colonies, but are making inroads across the divide. In Kenya, exports from both countries have risen considerably over the past five years, with the UK up almost SO per cent and France up 40 per cent from 1993 to 1997. In the Ivory Coast British exports almost doubled over the same period; albeit from a much lower relative base, while French exports rose by a little over 30 per cent.

The St Malo meeting, how- ever. appears to mark a rec-

ognition by both govern- ments that a new scramble for Africa would both be damaging and difficult - especially at a time when the US is making increasing inroads into the continent, and new competition emerges from East Asia and South Africa.

The question is why they are taking a bilateral rather than an European approach, when tbe EU is becoming more assertive in commerce and politics.

The answer seems to lie in the hands of technocrats who are suspicious of shar- ing influence with countries with little or no history on the continent, and which

hope to capitalise on Franco- British networks to promote their own trade and develop- ment strategies.

Despite recent cutbacks, France and Britain retain substantial and privileged links to the continent and are loath to see them eroded.

Paris in particular has maintained a strong role as benevolent guardian of for- mer colonies: by direct, although declining, military support (with bases in Dji- bouti and Chad;, unwavering political support tor Franco- phone African leaders, and a guarantee for the currency of 14 countries in central and western Africa, the CFA franc. There are 114.000 French nationals living on the continent. French cul- ture is dominant in West Africa, and Paris is the world's largest contributor of aid to Africa, devoting FFrl8.7bn (€2.S5bn. «3.1bn) in 1997.

Britain also boasts almost 140,000 nationals in Africa, gave £348m (S560m) in aid from 1996-7, and has improved its Lies with Afri- can members of the Com- monwealth considerably since the days of dispute over how to end apartheid in South Africa. Educational links are strong, and the UK maintains a §mall military force in Kenya, backed by regular exercises.

If Lbe old rivals do manage , to set aside a hundred years ( of history, and pool their resources on an increasingly | troubled and isolated conti- j nent they would offer a for- | midable opponent to any \ new upstarts looking for a I piece of the pie. j

But given the mutual sus- picion that remains, It may I take more than a few joint visits to cement the alliance- I

NEWS DIGEST

pRESSURE ON KINGDOM'S CURRENCY

Saudi Arabia ‘in fresh move to support riyal9

The Saudi Arabian Monetary Agency (Sama) is betieved to Kfi have Intervened this week to support the riyal, the second •• - such move in two weeks. Saudi Arabia’s economic prob- lems in a climate of low oil prices have led to pressure on the riyal. with offshore hedge funds short-selling the cur- rency in the hope that the government wHI devalue. Sama. the kingdom's equivalent of the central bank, first jnter- vened with an estimated $1bn to support the riyal in the summer following the Russian crisis. Intervention about 10 days ago is believed to have been for several hundred mil- lion dollars.

According to bankers, most of the short-seHing contin- - ues to come from hedge funds, although some local com- panies are hedging against a devaluation. One banker said, that the pressure could ease If the central bank explained that it had enough instruments to support the currency. .

Saudi Arabia has about $60bn in foreign assets. Available statistics show that foreign exchange reserves total only about $7bn, although Sama may not have published their full extent. Roida Khafaf, London

INTERNATIONAL TERRORISM

Iran’s stance wins praise

Lamberto Dini, Italy’s foreign minister, yesterday said there had been a significant reduction in Tehran’s support for " • international terrorism. At the start of the vfeirto Ronie-by • Iran's President Mohammad Khatami, the first to the west- ■- by an Iranian leader in 20 years, Mr Dini said there had been “a strong reduction” by Iran in the financing of terror;: . 1st activity in the world. Mr Dini suggested that toe change had been brought about because of the reformist course ■ ted by Mr Khatami himself. r .

Mr Khatami yesterday met Oscar Luigi Scaifaro, Italy's- - • head of state, at the Quirinaie palace and held talks wflfr senior Italian figures. -

Mr IMni said that the Iranian president's visit, which Is being undertaken amid very tight security, was being- : watched "with great interest” in the US. which is stiff main- taining sanctions on Tehran. James BGtz, Roms . .

Smiling face. Page 13

NO’S MISSING MILLIONS

Grupo Torras money traced

About SlOOm allegedly misappropriated from Grupo Tor- res, the Spanish subsidiary of the Kuwaiti Investment Office, has been traced to persona! trusts in the Bahamas set up by Sheikh Fahad Mohammed al Sabah. -the -former chairman of the KIO, according to new evidence revealed Op' during the London legal action over the company's oaf- lapse in 1992.

Lawyers acting for Grupo Torras discovered in Decem- ber that more than $1Q0m of the $450m misappropriated in total had been paid into a Swiss bank account in the ' name of Sheikh Fahad. This money has now been traced . through New York banks to the Bahamian trust tends and frozen.

The legal action against Sheikh Fahad and other former members of the Grupo Torras senior management has now ended. Judgment is not expected for several months.

John Mason, Law Courts Correspondent, London

FINANCIAL TIMES

WEDNESDAY MARCH 10 1999

★

THE AMERICAS

-°^.*g?J.ggj»!AMBmouS POLICY COMMITMENTS HAVE BEEN MADE FOR LATIN AMERICA'S BIGGEST ECONOMY

High stakes for Brazil in IMF deal

5-??? By8rin S* taiio

Brazil is no stranger to thi ways of the Internationa Monetary Fund. Fourteer loans from the Fund in 4( years bear testament to tht country's elusive search foi economic stability.

But few of those accordi have been as ambitious ir policy commitments as the letter of intent the Brazilian government signed on Mon day. Few have been as important for Latin Amer biggest economy, which has seen its currency lose nearly 40 per cent of its value so far this year.

The stakes are high. If the new policy framework works, Brazil will steer of the Inflation which once ravaged its economy, and lay the groundwork for high growth in the future.

Brazil’s neighbours will sigh with relief and the IMF, assailed over its policies in Asia and Russia and for fan, ing to prevent the January devaluation in Brazil, win be able to notch up a much- needed victory.

But if the new agreement does not quickly restore con- fidence in Brazil, the effects could be catastrophic.

At the least, the efforts needed to weed inflation out of the economy would require a prolonged recession. The worst-case scenario would bring a combination of galloping inflation and a default

on domestic debt

After a convraitioiial IMF approach to economic stabi- lisation, the new agreement sets two clear objectives:

■ First, to limit the infla- tlonary impact from the devaluation, in the short term the government aims to use tight monetary policy and IMF money to intervene in the currency market

■ Second, to prevent the ratio of debt to gross domes- tic product from exploding, the government will try to engineer substantial budget surpluses (before interest) in each of the next three years.

The price of these goals will be a steep recession, a

decline in GDP of 3^4 per cent, according to official estimates. Yet, they have won the support of many economists because of what they see as the absence of other options. “There Is no alternative,” says Mauro Schneider, economist at ING Barings in SSo Paulo.

The obstacles facing the new plan are considerable. For a start, the two goals of the strategy are contradic- tory: high interest rates to subdue inflation aggravates the fiscal problem by increasing the debt burden and reducing tax revenues.

The government is well aware of the need to bring down interest rates, both real and nominal, as soon as possible.

Brazil’s new floating exchange rate regime also

Brazffian economy EfradBoi real against dolar ffSperUSS)

faces a number of technical hurdles. Having abandoned its exchange rate peg, the government says it will now establish an inflation target as the new anchor for policy.

Yet one of the by-products of Brazil’s inflationary his- tory is a vast array of price indices, each one explaining a different aspect of eco- nomic behaviour.

In February, the Fipe con- sumer price index recorded inflation of 1.4 per cent, while the IGP-M index said prices had risen by 3.6 per cent in the same period.

Both measures are respected and closely watched. Which one to choose as a target? The cen- tral hank’s new team of tech- nocrats is still trying to resolve this question.

But the biggest challenge for the new plan is political Last year Brazil's politicians

. trfflaflen CP|, fipe (paw amage; %) 7D

Armfnio Fraga: adm baton

were asked to accept budget cuts and high interest rates to prevent a devaluation.

Now that the currency has been allowed to float, the politicians are fonng urged to back new budget savings and, for the time being, even higher interest rates.

Paucsecudg* (asaftotGSP) 50

1995 96 97 98 99 2001 Fcncasb

Arminio Fraga. the new president of the central bank, admitted that the revised fiscal adjustment being asked of Brazil was “enormous".

All this during a year when the economy is expec- ted to face one of the worst recessions on record. Few democratic political systems would withstand such pres- sure, even if they did not have Brazil's weak political parties and history of popu- list posturing.

Yet Brazil’s record of breaking past accords means that, in the Darwinian world of today's financial markets, it will be awarded few con- cessions.

“Mexico and Argentina have actually proved that they can tolerate the pain of such an adjustment when required," says Walter Molano, economist at BCP

Securities in the US. “Brazil has not yet demonstrated that ability."

Given the recessionary impact of the new pro- gramme. the IMF's critics have been quick to say it will not work

According to Jeffrey Sachs, the Harvard econom- ics professor, the combina- tion of budget cuts and high interest rates in an already declining economy could be “disastrous". “Being with the IMF is worse that being without it.” he told a Brazil- ian television channel last week.

The plan’s only hope of political survival is that the fear of rampant Inflation, which reached 2,700 per cent in 1993, will ensure contin- ued political support for the government, despite the inevitable slump in its poll ratings.

This case was powerfully made on Monday by Gustavo Franco, who having resigned as central bank president at the start of the currency cri- sis. was formally handing over to his successor.

-inflation is a type of state violence against the citizen," he told the audience. ‘The restoration of the currency [in 1994] was a reunion with a future that we thought we had lost"

Mr Franco may be blamed by many for Brazil’s present ills. But these rousing words did win him a standing ova- tion.

IMF reforms have ‘met Congress demands’

By Haney Dunne in Washington

US officials told a Senate banking subcommittee yes- terday that the International

Monetary Fund had made important reforms “broadly consistent” with those demanded by Congress when it approved a $17.9bn infu- sion of funds last year.

tary, and his deputy Larry Summers, said Gerald O’Driscoll of the conserva-

tive Heritage Foundation, which has opposed the Fund. “The US Treasury depart- ment exercises influence over the IMF policy far in excess of the explicit per- centage vote possessed by the US," he said. "IMF policy does not and wifl not deviate in any important or ftmda-

dynamfc which makes it dif- ficult to pronounce confi-

dently that the participation of the IMF in file domestic reform process is helpful".

This explained why the IMF must frequently revise its initial conditions. “IMF conditionality first brings economic pain and then political reaction. Political reaction slows reform, which leads the IMF to revise its conditions so as to conform to political reality in the debtor country."

Timothy Geithner. Trea- sury undersecretary for international affairs, said the IMF. on US urging, had

became “a more transparent and accountable institution”, releasing many of the main documents on IMF pro- grammes as well as policy papers and information on the Fund’s financial posi- tion.

However, before he arrived to testify, the banking sub- committee met four IMF offi- cials behind closed doors.

Commenting on the prob- lems of Asian economies, Mr Geithner said South Korea had undertaken a wide range of policy measures to liberalise its trade and

investment regimes. Among these were a reduction of tariffs, elimination of export subsidies and simplification and harmonisation of import certification procedures. It had also agreed to stop directing commercial bank lending decisions.

Mr Geithner's optimism on Korean reforms was count- ered by Catherine Mann, a senior fellow at the Institute for International Economics. Korea, she said, had “made relative little progress" towards reforms that would create a more market-ori-

ented economy. Institutional reforms, such as bankruptcy law and the social safety net, had affected the smaller chaebol, or conglomerates, the most, leaving large chae- bol unscathed.

She said mnunlirtatinn of smaller and weaker hanks into large hanks presents the appearance of a stronger financial sector.

“But merging the hanks and using government funds to buy back had loans, does not create a stronger institu- tional culture for credit dis- cipline," she said.

mental way from the policy If Congress is displeased of the US Treasury." with IMF policy, it should He said IMF policies usu- direct its concerns to Robert ally generated a nationalist Rubin, the Treasury secre- and populist harkiash. These

set in motion "a political

Cuba seeks to put spotlight on bomb trial

By Pascal Retcher In Havana

Cuba's communist government, which last week blocked foreign scru- tiny of a trial of internal dis- sidents. has actively sought world attention for the trial this week of a Salvadorean facing the death penalty for allegedly planting bombs in Havana that killed an Italian tourist

On March l, foreign diplo- mats and journalists were

unceremoniously ordered by police to stay far away from the cramped courtroom in west Havana where four leading opponents of the government were tried on “sedition” charges in a one- day closed hearing.

On Monday a week lata-, Havana’s foreign press corps were invited to attend a spa- cious court especially set up in a fortress built by the Spanish in colonial times, to cover the start of the trial of

a 27-year-old Salvadorean bodyguard and former mili- tary cadet accused of “terror- ism”.

Cuban television showed long extracts from the trial, including a carefully scripted declaration of repen- tance and plea for mercy from Radi Ernesto Cruz Le6n, the accused.

in the dissidents' trial only the prosecution case was made public inside Cuba. The accused were subjected

to an official campaign of vilification branding them as US-backed “traitors” and “mercenaries". They bad criticised aspects of Cuba’s one-party political system and called for a boycott of elections. They face jail terms of up to six years and are still awaiting sentencing.

President Fidel Castro has repeatedly held up the case of the Salvadorean as evi- dence that the communist- ruled island continues to be

the target of “terrorist” attacks launched by anti- Castro Cuban exile groups based In the US.

“The difference is clear. Last week's secretive trial involved interna] question- ing of the Cuban govern- ment and the Revolution. This week's public one is the David and Goliath scenario, Cuba as the victim of US- sponsored terrorism,” said one Havana-based foreign diplomat.

Mr Cruz has admitted he was recruited and paid El Salvador to plant bombs in five tourist hotels and a res- taurant in Cuba in July and September of 1997. In these blasts, an Italian visitor was killed and 11 other people were injured.

Mr Cruz, who faces a Cuban firing squad if sen- tenced to rfflutli, said he had acted purely out of economic motives because be needed money to pay off debts.

Ecuador crisis grows as banks stay closed

By Justins Newsoms in Quito and Rfehanf tapper In London

Ecuador’s political and economic crisis deepened yesterday when the govern- ment closed the country's hanks for a second succes- sive day and labour unions called a general strike.

The compulsory bank holi- day follows a sharp fall in bank deposits in recent weeks. Jorge Egas, bank superintendent, announced the move late on Monday, and said it was to “preserve the stability of bank reserves, limit the withdraw- als that could affect the domestic financial system, and avoid pressure on the currency and the continued rise in prices". The domestic foreign exchange market was also closed.

The government is sched- uled to announce economic measures tomorrow.

Devaluation of the cur- rency, the sucre, has added to the troubles of the bank- ing system as many Ecuado- reans borrowed dollars to buy cars and domestic appli- ances and have seen the cost of repayments rise sharply.

Mr Egas said the banking move was taken to allow the launch this week of eco- nomic measures aimed at stabilising the financial sys- tem and fostering growth. However, it was criticised by bankers.

“Confidence has been seri- ously weakened by the clo- sure. The government has lost control of the country," said Carlos Larreategui, president of the private banks' association.

Cuts in public sector redundancy payments and a build-up of wage arrears

have been the rallying point for a general strike called for today and tomorrow by labour unions.

Bus drivers, who agreed late on Monday to support the strike, have been hit hard by the devaluation and called on the government to freeze the sucre value of dol- lar-den ominated loans taken out to buy buses.

The government has threatened to send troops to run electricity plants and oil installations. Strikes which paralyse basic services were outlawed last year in consti- tutional reforms.

Meanwhile, fears are grow- ing in international markets that Ecuador may be forced to default on its external debt.

In London. Ecuador's Brady bonds rose in early trading but are still trading at average yields of more than 30 per cent.

The price index fell by nearly 8 per cent on Monday.

“The implied risk of default has increased sub- stantially,” said Peter West, chief Latin American econo- mist at Banco Bilbao Viz- caya, the Spanish bank. “The whole macroeconomic situation is dire and the financial system Is in extreme difficulty and so one should not underestimate the risk."

If Ecuador were to default on its Brady bonds it would be the first country to do so since more than a dozen debtors restructured bad commercial debt in the early 1990s.

Ecuador has the worst debt indicators in Latin America, with a debt to gross domestic product ratio of 82 per cent

Productivity of US workers up

The productivity of US workers soared in late 1998 at the fastest rate in six years, the government said yesterday, Reuters reports from Washington.

Productivity, measuring the amount of goods and ser- vices that workers produce per hour, grew by 4.6 per cent in the quarter ended in December, the Labour Department said. It revised upwards its previous esti- mate, which had pegged fourth-quarter productivity growth at 3.7 per cent.

The latest figures for non- farm productivity showed it recording its biggest gain since a 62 per cent increase in the fourth quarter of 1992.

The revision incorporates

data recently released by the Commerce Department showing that the gross domestic product of the US economy boomed at a 6-1 per cent rate late last year.

Together, the GDP and productivity reports show an economy moving forward at full speed but with a lack of inflationary pressures. Con- sistent with that picture, unit-labour costs fell 1.1 per cent in the fourth quarter, the department said.

Economists in a Reuters survey had expected fourth- quarter 1998 productivity to be revised to a 4 SI per cent gain. Unit-labour costs had been expected to decline by 0B per cent

Because toe work so dosety with our partners in Europe there isn't a In fact BT has inverted nearly £2 billion with our partners to bring

you tire benefits of our combined knowledge.

erf M

AIBACOM cegetel ’ "

develop business relationships tfamighout Europe.

Already over 80 % efthe Fortune top 500 companies work with us. WeW

like that experience

Iriterhu*)

Sr. •

i ’effort Tdenordia to work foryou too.

Call us on + 44 1179807788 or visit our website at www.btgIobaLcomfeuro

FINANCIAL TIMES WEDNESDAY MARCH 10 1999

ASIA-PACIFIC

State spending boosts Chinese output

NEWS DIGEST

By James Kynge in Beijing

China's industrial production grew by 10.6 per cent in the Srst two months this year, mainly because of increased state spending on infrastructure, it announced yesterday.

But this robust perfor- mance masked severe bud- getary constraints, which may limit China's ability to continue Keynesian fiscal spending to drive economic growth.

The revised 8 per cent year-on-year rise in indus- trial output for January was an indication that Febru- ary's figure exceeded 10 per cent, the official Xinhua news agency said. Industrial output in all of 1998 rose 8.9 per cent

Economists said the climb in industrial production should not be taken as a sig- nal that China’s economic slowdown was aver. In fact, the worst was yet to come, said senior Chinese officials.

Most of the output has been generated by spending stimulated by a RMBlOObn (S12bn) infrastructure bond issue last year, some RMB58bn of which remains to be spent this year. But this amount is too small to have more than a marginal and short-lived locomotive effect on industry. For exam- ple, the value of industrial production in the first two months was RMB280bn, greater than the entire bond issue.

China may also be reluc- tant to issue more large infrastructure bond tranches this year because the cost of servicing existing domestic and foreign debts is already too high - at RMB235bn, compared with total central budget revenues of RMB54&3bn in 1998.

Nevertheless, plans for rolling- out infrastructure appear to be going ahead. China's railways ministry plans to issue RMB3.4bn in three-year bonds to fond

railway construction pro- jects.

• The People's Bank of China, or central bank, announced a surprise rise in interest rates on US and Hoag Kong dollar deposits yesterday. The rate for one- year US dollar deposits rose to 4.4375 per cent from 3.7500 per cent. The move may have been aimed at curbing capital flight from China by raising the attractiveness of deposits in domestic hanks, observers said. But the risk

is that Chinese would try harder to change their ren- minbi into US dollars, thereby applying downward pressure on the local unit • China’s National People's Congress, or parliament yes- terday adopted amendments which elevate the official standing of private enter- prise. The changes describe private business as an “important component" of the formerly communist economy rather than merely an appendage.

India to halve India’s cross-border power international deal reaches final hurdle

4-/\ 1 /\ m« r| By Marie Wcbolson tn New Delhi l.-" " - " . " i India's, which suffers wider

[eienniine rill ~~ . ! fluctuations mpower.lt was

An unprecedented deal / y?-. -j agreed to isolate a Pakistani

By Mark Nicholson hi New Delhi

India’s telecoms regulator yesterday announced sweep- ing cuts in most telephone rates, including the halving of international call prices within three years, in the sector's most comprehensive overhaul of tariffs.

In a phased three-year “rebalancing" of virtually all existing telecoms tariffs and rental rates, the two-year-old Telecom Regulatory Author- ity conservatively estimated that the cuts and revisions would boost call volumes in India by 10 per cent within a year and increase overall sector revenues.

Among the main changes, which will begin to take effect from April l. the regu- lator said long-distance tar- iffs would fail by around 45 per cent over three years, and international tariffs by 50 per cent over the period.

Local call charge rates were revised, rather than simply increased, from a range of RsQ.8-Rsl.20 (2-3 cents) to Rs0.6-Rsl.4. while rental charges on fixed lines will rise on average from Rs75-Rsl90 a month to Rsl20- RS250 fS2.S2-85.88i. Cellphone tariffs were also sharply cut, while rental charges increased to Rs60O a month from the current Rsl56.

The net effect of the revi-

sions will be to cut overall charges for heavy telephone users while modestly increasing overall costs for average urban users. This will sharply reverse the cur- rent position, which effec- tively taxes heavy telephone users in India.

Rural users, and those who make fewer than 500 calls a month, together mak- ing up 70 per cent of tele- phone users, will end up paying less than the aver- age.

The regulatory authority said in a statement that the tariff revisions were only a first step in reforming the sector’s overall pricing.

The aim was to offer a “transparent framework'* for tariff determination, to improve consumer choices and flexibility to service pro- viders - which since 1994 include private companies - and to move Indian prices in line with international norms. -

It promised to review the results of the reforms after a year, and adjust if necessary.

The tariff reforms will also directly affect VSNL, the publicly quoted but state- owned monopoly provider of international telecoms, along with MTNL. another quoted public operator which pro- vides fixed line services in Bombay and Delhi.

By Marie Wcbolson in New Delhi

An unprecedented deal between India and Pakistan for the croseborder sale of electricity needs only final agreement on tariffs, accord- ing to Indian officials, who claim otherwise “the deal is done”.

The agreement would mark a milestone in improved relations between south Asia's, newly nuclear rivals after the pomp and rhetoric of last month’s prime- ministerial summit in Lahore. It may also signal a tentative, but noteworthy shift in Pakistan's diplo- matic approach towards its neighbour.

A third round of bilateral talks on the proposed sale of 300MW of Pakistani power to India are expected to resume later this month. These will cover pricing and payment details, according to offi- cials, who say most techni- cal issues involved in linking the two countries' power grids were resolved in ear- lier rounds.

Indian officials also say that the "political atmo- sphere Is favourable” for an agreement, following the recent thaw in bilateral rela- tions between the tradition- ally chilly rivals, which cul- minated 7 In last month's prime ministerial summit in Lahore.

Prospects for the power deal; 7 and perhaps other future steps towards closer

Nawaz Sharif (right) and Atal B&iari Vajpayee at the Lahore summit power deate add flesh to gestures of rapprochement AP

bilateral relations - have been improved by a politi- cally delicate shift in Paki- stani policy towards India.

Islamabad is now appar- ently prepared to allow some progress on a series of mod- est bilateral initiatives, such as power and the establish- ment of the Delhi-Lahore bus link celebrated at the Lahore summit, without insisting that such moves be directly linked to progress on the intractable issue of Jammu and Kashmir. Islam- abad consistently insists that this is the “core" bilat- eral Issue.

Successive Pakistani gov- ernments refused to counte- nance’more modest moves to improve relations unless there was at least simulta- neous progress on Kashmir.

Pakistani officials appear

to have edged closer to India’s equally long-stated position, that addressing the deep-rooted dispute over Kashmir may prove more manageable after earlier moves designed to improve trust between the two sides.

“If we deal with these issues, the Kashmir issue is easier to deal with - they are to improve the atmo- sphere to deal with the last issue," Sartaj Aziz. Pakis- tan's foreign minister, said in the margins of the recent Lahore summit. His views have been echoed privately by other senior Pakistani officials.

A power deal may prove early fruit of this tentative rapprochement. In earlier talks, the two sides resolved the problem of linking Pakis- tan’s power ' grid with

India’s, which suffers wider fluctuations in power. It was agreed to isolate a Pakistani substation from its domestic grid, enabling it to be the link with India.

Officials from both sides also agreed that Pakistan would at first supply 300MW of power, though this could rise quickly to 600MW and eventually to 2,000MW depending on the amount of surplus power arising from private power projects under construction in Pakistan.

Pricing, however, remains unresolved. Pakistan has insisted the tariff should be set at a level commensurate with the price of power from the latest private power plant to enter its domestic grid - around 7 cents per kilowatt hour. India has said it would be prepared to pay only the marginal cost of Pakistan's surplus power plus a small surcharge. This would place the tariff around 3 cents to 4 cents a unit The two sides have also to agree what component of the over- all price would be paid in foreign currency. India is looking to buy power over at least 10 years.

But despite currently wide differences over price, Indian officials say they are confi- dent agreement will be reached. "The deal is done, the parameters of the deal are definite,” says Pradlp Baijal. the Indian power j ministry official leading the 1 negotiations. I

PREPARATIONS^FOR REFERENDUM I

Proposals for a republic are unveiled in Canberra

An Australian president would be by »» ’ '

minister from public nominations under draft legislation . _ unveiled yesterday on the proposed transition to a repub-

|jC-

The president would be head of state and ail rsferentres ; in the constitution to the British Queen, the current head at state, would be removed if November’s national referen- dum approves the move to a republic. •

Under the draft legislation, a president would need, approval by two-thirds of. the combined parliament. The president would serve a five-year term and could be .. . sacked by the prime minister if parliament approved the dismissal wttWn 30 days.

The referendum will involve two separate baliot papers. To succeed, a referendtro requires a national majority and. a majority in four states: Gwen Robinson, Sydney

PRESSURE ON PARLIAMENT

Thailand pursues reform drive

Thailand's cabinet yesterday resolved to extend indefinitely the current parliamentary session, due to end on March 22, in order to push through long delayed economic, legal and political reforms.

The decision came after a committee of the country s appointed Senate made significant changes to a crucial bankruptcy bffl that are unacceptable to the government and the International Monetary Fund. The full Senate will meet on Friday to ratify the changes. H they do so. the Ml and other legal changes doukj be delayed by up to six months before the government can pass its own version.

The extension of the parliamentary session puts pres- sure on senators to follow the government’s original bank- ruptcy bill and gives the government time to work with the Senate to reach mutually acceptable modifications of other legal changes dealing with foreclosure and land leases.

The next ordinary session of parliament is scheduled to begin in late June. Delay of the key legislation until that time could jeopardise further disbursement of funds from the IMF and World Bank. Ted Bardacke, Bangkok

INDIAN ECONOMY

Growth forecast ‘optimistic’

India's economy will post slower growth this fiscal year than the officially estimated GDP growth rate of 5.8 per cent, according to a leading independent think tank, which calls the government's early estimates of agricultural out- put “optimistic''.

The Centre for Monitoring Indian Economy, the Bombay- based economics research agency, estimated growth this fiscal year, ending this month, el closer to 4.5 per cent It bases its lower assessment on likely agricultural produc- tion growth of 1.5 per cent against the government's esti- mate of 5.3 per cent

The agency pointed out that grain production had grown only 1.5 per cent this year, meaning other farm products . would have to rise in output by over 10 per-cent to justify government figures. Growth in non-food gratis sectors, it said, had averaged no more than 5 per cent throughout this decade. Mark Nicholson, New Delhi

Vintage 1945

HK AND BEIJING DEALS GATESALLIES WITH HK TELECOM AND CHINESE GOVERNMENT __

Microsoft to put Beijing online

By Rahul Jacob in Hong Kong and Louise Ketioe hi San Francisco

Microsoft, the world's largest software company, will today announce a partner- ship with China Telecom and the Chinese govern- ment's State Economic and Trade Commission, in a proj- ect that involves linking gov- ernment ministries to the internet.

Bill Gates. Microsoft chair- man, who is due to sign the deal today in Shenzhen, said the project was an important milestone in the construc- tion of China’s information infrastructure.

More than 40 government ministries are involved in

the project, which is designed to promote a new “service orientation" by the ministries. Microsoft said.

As part of the partnership, Microsoft will donate a wide variety of software as well as technical support and con- sulting services.

Earlier, Mr Gates spoke in Hong Kong, where he announced an on-line ser- vices alliance with Hong- kong Telecom the territory’s dominant telephone service. The deal ! will allow com- puter users to rent software on a one-off basis, download films and play interactive video games. “What we’ve got here is the internet In a more powerful form than 99 per cent of the computer

users in the world have access to," said Mr Gates.

In the race to position itself for the convergence of the PC and TV, Microsoft has been buying stakes in cable companies in the US. Yesterday’s deal allows it to combine with Hongkong Telecom to deliver high-speed broadband ser- vices of Hong Kong's state- of-the-art telephone network. In March 1998, Hong Kong became the first city In the world to deliver fully Inter- active TV, including home shopping and video on demand.

Analysts said the deal offered Microsoft a high den- sity population laboratory to test new applications and

also gave Hongkong Tele- com’s interactive multime- dia service a range of new functions. "Microsoft is excited to expedite the con- vergence of PC. TV and tele- communications technolo- gies with Hongkong Telecom," said Mr Gates.

Hongkong Telecom said the new services could be used, for example, by stu- dents to access lectures and would enable businesses to train -on -demand using the PC. “What Microsoft is get- ting is someone to act as a. 'betasite’ for services it is testing from a technological and consumer standpoint," said Lloyd Fisher, Salomon Smith Barney telecom ana- lyst.

mmm

Girard-Perregaux

For further information:

GIRARD-PERREGAUX • 1, place Girardet • CH-2301 La Chaux-de-Fonds Tel: (+4 1 )32 911 33 33 • Fax: {+41 )32 913 04 80 • E-mail: com@girard-perregaux.ch

South Korea looks to smaller businesses to lift it from recession and create jobs

John Burton reports the conglomerates, once the engine of the economy, have been replaced In favour by more specialist groups

The chairmen of South Korea's big conglomer- ates, or chaebol were once the honoured guests at the Blue House, the presi- dential mansion. Now it is the turn of small business.

At one recent gathering, President Kim Dae-jung was host to the world’s leading makers of tents, motorcycle helmets and nail clippers. “We want to encourage the growth of small business by recognising small Korean companies that are already global leaders,” said a presi- dential aide.

The government alms to encourage competitive niche players in a nation where j big was considered beautiful ' until last year's economic crisis, when the chaebol were blamed for poor investment decisions. A more balanced industrial structure would reduce the chaebol's over- whelming market and finan- cial dominance, while pro- moting specialised companies with the flexibil- ity to respond rapidly to global economic trends.

“Small business will be the salvation of the Korean economy. There jre plenty or success stories and there will be a lot more if eco-

nomic restructuring suc- ceeds." said Peter Irving, head of London-based Atlan- tis Investment Management, which invests in small and medium-sized listed Korean companies.

He cites the example of Medison, a medical equip- ment company, that has become a leading global

hen Marvin, research head at Jardine Fleming in Seoul.

The government has qua- drupled spending on the small business sector to Won4,000bn (J3J>bn), includ- ing providing cheap loans and venture start-up capital

The goal is to create more Jobs as South Korea's unem- ployment rate hits nearly 9

The goal is to create more jobs as unemployment hits 9 per cent

manufacturer of ultrasound systems. Other promising sectors for entrepreneurs include electronics and phar- maceuticals.

These industries, along with food companies, have become the favourite invest- ments among four foreign- managed equity funds estab- lished by the government last year to pump Sl.3bn into small and medium-sized businesses.

Small companies bore the brunt of last year's financial crisis and bankruptcies among them climbed by a third to nearly 23.000. "If you were a small business, you just disappeared," said Step-

per cent from less than 3 per cent a year ago. “Seventy per cent of the budget increase in the first half of this year is devoted to creat- ing jobs, with the emphasis on developing small busi- nesses." said Lee Kyu-sung, the finance minister.

Korea's 2.6m small and medium-sized companies already employ nearly 80 per cent of the nation's work- force.

But critics say the govern- ment's policy does not go enough. “The missing ele- ment of corporate reform is a decisive shift In the bal- ance between the chaebol and small and medium-sized

enterprises. The government keeps throwing more money at failed chaebol rather than small companies." said Jang Ha- sung, a professor of finance at Korea University-

Institutional barriers to the development of small businesses include the bank- ing system. Despite recent reforms, banks still lack the credit analysis skills to eval- uate small businesses and demand substantial collat- eral for loans. That makes it difficult for entrepreneurs to raise capital.

But analysts are hoping the planned takeover of Seoul bank and Korea First, two of Korea's biggest banks, by HSBC Holdings and a US financial consor- tium led by Newbridge Capi- tal might change the situa- tion.

The foreign bankers are expected to have a better ability to conduct risk assessment. “The foreign- owned banks will the lead the way in lending to small businesses and I expect Kor- ean banks will eventually follow suit." said a western diplomat

If the banka do change their ways, the Blue House might one day host a Korean Bill Gates rather than just the world's biggest maker of nail clippers.

?r<SJs#* -Wji5(ic. :

roeuvu*

'^S95 -*5*>«lfl*

**-

j^NM* ••***■

jjgfF ■*&£&-

Robert Silva enjoys special privileges on one airline. Now, he receives preferential treatment on four others.

BRITISH AIRWAYS

AmarisaftAkfeiM

Canadian Airlines'

Cathay Pacific

How in the world does he do it?

revolves around you. Now there’s an alliance that recognises top-tier frequent flyer privileges you have on one airline on all of the others. Finnair has recently joined the oneworld alliance and will be delivering these benefits in late 1 999. www.oneworldalliance.com

,"v -Zjc

INANCLAL TIMES WEDNESDAY MARCH .0 1999

THE BRITISH ECONOMY

Budget projections move nation closer to euro criteria

By Wolfgang MQncbau, Economics Correspondent

The economic projections in yesterday's Budget, announced in the House of Commons, have moved the UK a step closer to meeting the government’s own quali- fying “tests" for membership of the euro.

The Budget’s central pro- jections for economic growth

suggest the economic cycles in the UK and the euro-zone are more closely aligned than previously, as both economies are projected to go through a period of slow economic growth in 1999 fol- lowed by a pick-up In growth next year.

The government previ- ously cited the misalignment in the economic eye les as one of the main obstacles for

UK membership of the euro. The Budget's forecast of 1999 growth of between 1 and 1-5 per cent pitches the UK at a level only slightly below recent projections for Ger- many. The forecast of eco- nomic growth of between 2J25-2.75 per cent in 2000 puts the UK on the same plateau as the rest of the euro-zone.

With the 1999 Budget, the UK also fulfils all but one of

the Maastricht criteria for membership of the single currency, which stipulates Tnavitnuffi levels of deficits, public debt, inflation and long-term interest rates, and which sets out conditions for exchange-rate stability.

Mr Brown said yesterday: “In line with our golden rule, even under our most cautious assumptions, we are balancing the current

budget over the economic cycle. And far the first time in a generation we are elimi- nating the current structural deficit-”

The UK, however, still faces one big qualifying hur- dle due to the government's refusal to enter the new exchange-rate mechanism linking the euro to the other European Union currencies. Mr Brown argues that ERM2

membership is not formally required by the Maastricht Treaty. The European Com- mission and other countries apply a different legal inter- pretation of the treaty, insisting the UK must enter the ERM2 for two years before joining the euro.

While the UK’s macroeco- nomic performance is likely to facilitate future member- ship of EMU. some of yester-

day’s tax changes may accentuate the differences in tax systems and structures between the UK and some other European countries.

Mr Brown yesterday bailed a new lower corpora- tion tax rate of 30 per cent as “the lowest rate of any msynr country in Europe and the lowest rale of any major industrialised country any- where-'

CHANCELLOR’S SPEECH LOWEST LEVELS OF TAX IN GENERATION

‘Enterprise and fairness’ emphasised

By Deborah Hargreaves in London

“A Budget for Britain to succeed in the new economy and lead in the new cen- tury.” is how Gordon Brown, chancellor of the exchequer, opened yesterday's announcement of monetary and fiscal measures for the coming year.

“This is a Budget built on the centra] idea that our future depends on enterprise and fairness together," he said. In line with its bid to encourage enterprise and innovation along with family life, the government has slashed business and per- sonal taxes to the lowest lev- els in a generation.

The Budget heralded a shake-up in competition pol- icy. new measures to encour- age small businesses and tax breaks for entrepreneurs. “Britain must make a quan- tum leap in skills, innova- tion. competition, informa- tion technology’ and small business,” said Mr Brown. “It is wholly unacceptable that consumer goods can still cost up to twice as much in Britain as in Amer- ica.”

The chancellor announced seven major reforms for business. He reduced the level of corporation tax to 30 per cent from April, calling it the lowest rate in British history and in any major industrialised country'. The small companies tax was cut to 20p benefiting 350.000 companies.

For the very smallest busi- nesses with profits of up to £10,000 (S16.000) a year, there

Optimism on growth rates

Britain’s growth rate will bo between one per cent and

1.5 per cent this year, Gordon Brown, the chancellor, said yesterday, Deborah Hargreaves writes.

Sharp cuts in interest rates by the Bank of England, the UK central bank, have led to government expectations of a robust bounceback for the economy next year. The growth rate will rise to 225 per cent to 2.75 per cent in 2000 and 2.75 per cent to 3.25 per cent in 2001 , Mr Brown said. British interest rates of 5.5 per cent are now at their lowest long-term rate for 40 years with inflation measured at

2.5 per cent

will be a new starting tax rate of lop in the pound from April 2000. The legislation is aimed at ensuring those who take risks are rewarded: 85 per cent of the firms gaming from the new rate have fewer than 10 employees - “the very firms we most want to see grow, the very firms whose growth will cre- ate the greatest number of new jobs".

In recognition of the diffi- culties faced by manufactur- ers from a strong pound and global instability, Mr Brown announced £325m to allow small to medium-sized busi- nesses write off 40 per cent of all they invest in the com- ing year.

Tax cuts for key personnel in high-risk businesses were also introduced along with proposals for an all-employee share ownership scheme. Tax credits for small compa- nies investing in research and development would allow them to underwrite up to a third of their costs.

The chancellor also announced measures to upgrade Britain’s science and high-tech industries with an additional ElOOm for the £600m joint infrastruc- ture fund to renew the sci- ence capital base and E20m start-up funding for hi-tech venture capital funds. This would be accompanied by a national IT strategy with computers available to all communities across Britain. Environmental measures aimed at reducing carbon emissions by 125 per cent by 2Q10 included proposals for an energy' levy on business from April 2001 which would cut emissions by 1.5m tonnes of carbon a year. But this controversial measure would only be introduced after widespread consultation with industry. It would also be accompanied by £50m to encourage businesses to invest in new environmental technologies.

In an effort to help the lower-paid, the chancellor introduced a new lOp rate of income tax for the first £1,500 of earnings from April and a lp cut in the basic rate of Income tax to 22p from April 2000.

In a bid to assist families, he announced a tax credit for parents to replace the married couples' allowance.

Traditional gesture: Gordon Brown, the chancellor, holds the Budget red box aloft outside his London residence Smeaa Lynch

Company share schemes boosted

By Jean Eagtesbam In London

Employees will for the first time be able to buy shares in their company using their pre-tax salary under a new share scheme designed to build a “democracy for enterprise”, the chancellor announced.

However, experts said the tax breaks were not as gen- erous as Gordon Brown had implied.

They also said the plan was unlikely to achieve the government's stated goal of doubling the number of com-

panies that offer share schemes to all employees.

The scheme, which comes into effect next year, allows employees to defer tax but not to avoid it altogether. “The chancellor did imply it was more tax-advantaged than it is: it’s a benefit, but it’s not completely tax-free." said Sarah Hyde, a partner at accountants Ernst & Young.

Employees can buy shares from untaxed income but they have to pay income tax on the purchase price when the shares are sold. Shares

sold within three years will also be subject to capital gains tax.

The scheme is a hybrid of the two existing all- employee schemes - profit sharing, in which employers distribute part of their prof- its by way of free shares, and save-as-you-earn tSAYEi. in which employees hare to save for shares but can buy them at a signifi- cant discount to the market

price.

-The new scheme will give employers the discretion to give their workforce an

A mass of figures adds up to a modest redistribution of wealth

^ * nliirne on/< mlnncac A nH ptmirftnnr'c minri ic fho in him ic on rhanirini* fhp (’hanfffllftr nrMPnfC hill

Philip Stephens picks through a plethora of Budget measures to find a vote-winning theme of help for the poor and hard-working

To blink was to miss the economics in Gordon Brown’s speech. The pace of growth had slowed but would pick up. Inflation was low and would remain so. Public finances were in good shape. The last Budget before the millennium, the

chancellor of the exchequer- asserted, would leave behind a century of sterile ideologi- cal conflicts between right and left. Then it was on to the serious politics.

Mr Brown told us that while the Bank of England sets interest rates and fiscal policy is on automatic pilot, the Treasury has become the engine room of social policy. It promises a fairer society - and a dynamic economy. The chancellor sees his task as building a bridge between the two.

As usual it was a confident performance. No one quite

commands the House of Commons like Mr Brown. If there was a criticism of the style, it was that his mes- sage was often lost in a bliz- zard of technical detail and populist wheezes. As corpo- ration tax cuts made way for research and development tax credits, enterprise man- agement incentives and tax- free Individual Learning Accounts, you could hear the accountants cheering.

The numbers - £4bn here. £6bn there - deliberately inflated the Immediate changes. Mr Brown could never resist rolling up sev- eral years' tax cuts and pub- lic spending commitments into one big package. For tbe record, the net “giveaway’' In the next financial year is a fraction over Elba.

These are small points. The assault on the middle classes that many bad feared

and a few had hoped for did not materialise. It was never planned. Tony Blair’s gov- ernment has elections to win. A lOp income tax rate makes a good campaign pitch. So does a new tax credit for children. And a £100 winter heating allow- ance for pensioners rich and poor could be worth a lot of votes in elections to the Scottish parliament.

The calculation is that the middle classes can live with the (deferred) abolition of mortgage tax relief and the married couples' allowance. There will be cries of out- rage from the moral minor- ity - but Mr Brown is prob- ably right.

This, though, is a redistri- butive Budget - just as were the two that preceded it. Trawl through the dozens of changes in the Budget Red Book. Add up the rows of

pluses and minuses. And two things are clear. The first is that Mr Brown has paid for cuts in high-profile direct taxes with increases in more obscure, mostly Indirect taxes. The second is that, by and large, the changes shift a modest amount of money from the higher-paid to those at the bottom of scale. Thus the new family tax credit will be paid for through increased National Insurance contribu- tions for those near the top of the income scale. Com- pany car drivers will pay to keep the pensioners warm.

Some of this represents direct no-st rings -attached transfers to the poorest - particularly pensioners and families with children. But the main beneficiaries - as tbe chancellor so often reminded us - are those able and willing to work.

Which takes us to Mr Brown’s main political pur- pose: to square the circle of orthodox economics and social justice. Work, in tbe

chancellor’s mind, is the only way the government can lever up tbe life chances of the least privileged.

The conditions attached to the New Deal welfare-to- work programme - tough- ened again Tor the young In this Budget - provide the stick: a plethora of tax incen-

Ihe Budget on FLcom

The Budget measures are covered on foe FT web. site at FTntntfbudgot It Is caring the chance***# speech to -foe Hou» ot . Commons In hi* as we8 a derated analysis of his actions and pafcies by FT commentators

in him is set on changing the culture of our society. The poor - or rather those among them St for employ- ment - are to given oppor- tunity. And with it a decent income. But they must be willing to work For it The question is whether the middle classes, whose views are so earnestly tracked in 10 Downing Street, will buy the package. The answer is a conditional

fives and credits proride the carrot. And there lies the importance of the lOp starting rate of income tax. Purists wifi argue that a higher threshold would have been fairer. But that misses the point. What counts for Mr Brown is the demonstra- tion effect - work pays.

The Scottish Presbyterian

yes.

Mr Brown has credit in the bank. The government’s most precious, and for many, unlikely asset is the percep- tion that it is competent to run the economy. Sure, the chancellor may be chipping away at some of the tax priv- ileges of tbe better-off, but be has kept his word on inflation and spending. He is a credible guardian of tbe nation’s finances.

And there is no hint of class envy in the redistribu- tion. With tax cuts Cor small companies and new incen- tives for entrepreneurs, the

All this is conditional. The present equanimity among the voters of Middle England is built on their own prosper- ity. Higher taxes slip by unnoticed when incomes are rising. Jobs are safe and interest rates are falling.

Mr Brown's economic fore- casts are built on optimism. Manufacturing is already in recession. The rest of the economy is perilously close to it. The national mood will change if he is wrong.

Budget-by-Budget. this chancellor Is edging in the direction of a new society. But social engineering is a perilous business. Voters are fickle, and one day the Con- servatives will present a credible opposition.

BRITAIN

Strategy launched to foster IT-literate society

By Deborah Hargreaves

effective discount, by match- ing any shares bought with up to two free shares.

Experts applauded the extra room for manoeuvre that this would give companies.

The government has linked the relatively low number of employee owner- ship schemes in the UK with the country’s poor productiv- ity. About 7 per cent or the UK workforce participates in such schemes at the moment in contrast to 10 per cent in the US and 23 per cent in France. ...

chancellor presents himself as a friend of the hard- working rich as well as the deserving poor. That’s clever politics as well as sensible economics.

Enhanced role sought for European nations in Nato

Entry to euro urged in Rover rescue plan

By Haig Sknonian in Geneva

By Alexander fticofl. Defence Correspondent

Changes to Nato command structures to give Europe much greater ability to launch military missions without US participation are to be proposed by the UK government today.

In a speech at the Royal United Services Institute in London. George Robertson, chief UK defence minister, will expand on the European defence initiative launched last year by Tony Blair, the prime minister. He will urge allies to agree on new steps at the alliance’s 50th anni- versary summit in Washing- ton next month.

Under the proposals, new European Union capabilities should be built within Nato, without setting up a sepa- rate EU body or duplicating Nato assets. Decisions to deploy forces would con-

tinue to be taken by individ- ual governments, not any EU or supranational body.

For Europe to tackle situ- ations that do not demand a full Nato response, ’’we should build on the provi- sions that allow Europe access to Nato's military assets and capabilities for European-led operations." Mr Robertson wrote in a summary of his proposals.

He will suggest that the post of deputy supreme allied commander Europe should be upgraded to ulti- mate commander of Europe- only forces. The post, until now held by a UK officer, would be rotated.

Europe would need to ensure reliable access to Nato resources. “We could identify a range of European command options and force packages for European-led operations, and take steps to ensure they are regularly

exercised,” according to Mr Robertson.

The proposals are likely to be welcomed by other Euro- pean nations, which have long desired a stronger Euro- pean defence identity. The immediate problem will be France’s absence from Nato's command structure because of a long-standing dispute with the US.

Mr Robertson will argue other European countries need reform their armed ser- vices in a similar way to the UK, stressing rapid deploya- bility of troops to deal with crises, and downplaying the need for national defence.

Javier Solana. the Nato secretary-general, yesterday said the alliance was ready For a stronger European role. Building it within Nato would ensure that Nato members outside the EU - Iceland. Norway and Turkey - would not be excluded.

Werner Samann. new chairman of Rover, yester- day urged the UK govern- ment to join the euro “as soon as possible", as he set out six priorities to restore the UK subsidiary of BMW to profitability.

“We would like to export products, not jobs." he said. “With a high pound, the dan- ger is that we export jobs."

The amount of UK govern- ment aid to be made to tbe German carmaker is one fac- tor likely to affect its deci- sion on investing In boil ding new models at Rover’s Long- bridge plant in Birmingham, central England.

Mr SSmann focused his fire on performance in the UK. Rover’s prime market, where sales and market share have crumbled. To boost performance, he

announced a push on new products, marketing, quality'

and public relations.

BMW is expected to announce in its 1998 results later this month that Rover lost at least DM1.5bn t£0.83bn). based on its con- servative accounting stan- dards. As a first step to improve penetration of the crucial small family car mar- ket, Rover will later this year launch revised versions

of Its slow-selling 200 and 400 models. Mr SSmann said the revised cars, codenamed "Jewel” and “Oyster", would be much more than facelifts.

Mr Stimann. an engineer previously in charge of BMW’s engine and gearbox operations, said Rover had BMW's backing to remain a full-range carmaker.

However, a decision on whether the new models will be built at Longbridge is not

expected until BMW’s super- visory board meets later this month. "As chairman of Longbridge. I'm fighting for Longbridge." he said.

Analysts have said Rover wotdd need to build at least 500,000 units a year to justify the heavy investment in a new “platform” - or basic engineering structure - for the cars.

Geneva Motor Show, Rage 16

Formula for arms handover goes to Sinn Fein

y John Murray Brown In Belfast

The Ulster Unionist party yesterday met Sinn Fgin to propose a way out of the weapons Impasse that is blocking formation of a new power-sharing administr- ation in Northern Ireland.

The pro-British party told the political wing of the Irish Republican Army that the

executive could be estab- lished on a simple written assurance that IRA disarma- ment had started from Cana- da's Gen John de Chaste lain, who chairs the international body overseeing the destruc- tion of Illegal arms.

The proposal was made by- David Trimble, the Ulster Unionist leader and the province's first minister, to Gerry Adams, the Sinn Fein

president, during a 75- minute meeting near Belfast, tbe regional capital

Mr Trimble said "a limited amount of progress was made". The UUP bas demanded a “verifiable start” to IRA disarmament before Sinn Fein enter the 10-member executive, which is due to take over running the province when powers are transferred from the

UK parliament in London.

However, the IRA - which advocates a united Ireland - has given no indication of being prepared to change its position that there will be no arms decommissioning.

The latest plan envisages a 3-hour gap to await a fax from Gen. de Chastelain on March 29 - the new deadline set by the UK government for the transfer of powers

and the day executive mem- bers are due to be nom- inated. This would provide a face-saving formula for both sides.

It is unclear whether Mr Trimble realistically believes Sinn Ffetn will take up his offer. But by detailing a com- promise formula, officials say Mr Trimble is keen to emphasise the “inevitability of decommissioning. “

C0ti

Biidg1

... :.■■» •

Gordon Brown yesterday heralded an information technology strategy to make Britain a computer-literate, technology-friendly society.

The chancellor said: the government -would spend £1.7bn fS2.7tm) to encourage wider use of computers. This aims to allocate’ ESito to" fund a network of np to l,000 . computer learning centres in schools, libraries, colleges and internet cafes.

These centres open for up. to 14 hours a day and at weekends to encourage both children and adults , to explore -the uses of. IT.-- “A - whole new network, of com- puter learning with one par- pose only, that the whole of Britain Is equipped for the information age.” lie said; . .'

The government will sub- sidise computer rental for low-income families and allow workers ta use com- puters loaned by employers without being taxed on them as a benefit-in-kind. . .

“Anyone left out of the new knowledge revolution will be left behind In the new knowledge -economy," Mr Brown said. “So we will pioneer a system under which local partnerships will be able to loan computers and software in the new cen- tury the way local’ ffbrdries have loaned books in the last century.”

The strategy will see 32.000 schools connected to the internet and 370.000 teachers trained to use computers. Teachers will have access to funds of £20m to buy 100,000 computers for home use.

This year's finance bill will also allow far electronic filing of tax returns. The government is modifying its IT systems to enable inter- net filing of VAT and self- assessment returns by April 2001 and employers' tax returns by April 2002.

Individual Learning Accounts will be expanded to provide tax-free assistance for learning computer skills. Both employers and employ- ees will be able to make tax- free contributions to these accounts. . . . . —

• Tax credits for research and development will be introduced for the first time in the UK next year, as part of the government’s drive to stimulate scientific innovation, Clive Cookson and David Pilling write.

The £150m R&D Tax Credit for small and medium-sized enterprises wifl cut the after- tax cost of research by 127a per cent for profitable com- panies. It will reduce the immediate cash cost of R&D by 24 per cent for loss-mak- ing companies.

Loss-making companies will receive this benefit instead of the present arrangement, in which they carry forward accumulated losses - often over several years - to write off against any future profits.

In addition, the govern- ment will extend first-year capital allowances that allow small and medium-sized companies to write off 40 per cent of capital investment, at a cost of £325m in the com- ing year.

The Bioindustry Associa- tion said it had long cam- paigned For an R&D tax credit. The initiative was “excellent news".

Energy tax i

raise minim

increase d-sac

'-•c '

Cu{ On or?*--

*■»

zi* 1 1 ,

.^nrjprj

v tcck

WEDNESDAY MARCH 10 1999

£*43:''--

"ire*- r .*

it* Jt. . .

F^ik1] •._ :.f^i ;-^

,.*? pj.-. -

i&0te-:ir **■>,

'3^^-^-iX'..*

•',%

'"tttj

■h

§ST- '■ -' - •tfe • f ■ y-sc

,.'.:v-*t • • / ■ ?.■*» ■••■»';■*■

1^.^- •■•■r .....

£;•••- v-.- <v

*. ; > r •

r.'-V.T*. •

•*«;

p-r: •

• jj" ••. ‘ •

!•:■'■

S'*-'" -

R'%1‘

gJMc*- f.r-'"- -*lS-v ’ •

■■;.*■'- ' ?

^ -''

,• \v .

* 10

r;if

;pn rc‘‘*

i!>

-yj !'■ st V •v'

FINANCIAL TIMES

Caution in City over Budget handouts

THE BRITISH ECO NOMY

Cut in corporation tax wins welcome

By Philip Cogftan and Mcadv m London

Reaction to the Budget in

the_JC ty of London was guarded after the chancellor proved to be more generous with tax handouts and spending increases than most forecasters bad expected.

Economists had been looking for a “neutral" bud- get with no net handout to taxpayers on the grounds that Gordon Brown would be constrained by the possible effect on public finances of an economic slowdown.

Bob Semple, the BT Alex Brown strategist, said: “There Is a fair bit of demand management involved. My guess is that the equity market reaction will be positive but gilts will be more suspicious. It looks like there will be a fiscal stimulus of £3-5bn i$5.63bn) in 2001, a likely election year."

Some saw the Budget as altering the outlook for interest rates with the Bank of England, the UK central bank, likely to react cau- tiously to the boost to thee- conomy.

Tax up by stealth, says opposition

William Hague, leader of the opposition Conservative Party, accused Mr Brown of being the “pickpocket chancellor," increasing taxes by stealth despite the chfnc®ilor’s presentation, writes Deborah Hargreaves.

Paddy Ashdown, leader of Britain's third party, the Liberal Democrats, said the chancellor had adopted a “scattergun approach,” attbough he welcomed many of the measures.

The party branded the new 10 pence rate of income tax as an expensive gimmick. Malcolm Bruce, its Treasury spokesman, said: “The Budget means well, but Gordon Brown has put gimmickry and complexity before fairness and simplicity."

Richard Jeffrey, Charter- house group economist, said: “I suspect this is going to give the economy too much of a stimulus. Consequently, we will get too strong

NEWS DIGEST

ENVIRONMENTAL REFORMS

Energy tax expected to raise minimum of $2.8bn

An energy tax on business, as part of "the largest and most radical package of environ mental tax reforms ever announced in this country”, was announced yesterday among the Budget measures by Gordon Brown, chancellor of the exchequer. The tax is expected to raise at least El .75bn ($2.8bn) in Its first full year. Mr Brown promised “significantly lower rates of tax for energy-intensive sectors that improve their energy efficiency. Energy-intensive sec- tors are being asked to come forward with proposals, which may include trading in carbon "permits".

Mr Brown said that the government was implementing the recommendations made by Lord Marshall, the chair- man of British Airways, who led a government taskforce on the business use of energy last year. The chancellor said the energy tax would cut carbon pollution by 1.5m tonnes, as part of a programme of measures announced in the Budget that would together cut carbon pollution by 3m tonnes. Vanessa Houkler, London

TOBACCO DUTY

Increase disappoints industry

The immediate 17.5p increase on the price of 20 cigarettes means that a pack of 20 sold in the UK will cost £3.82 ($6.1 5) compared with £1 .98 for a similar pack in France, the UK Tobacco Manufacturers' Association said yester- day. Mr Brown said the government would continue increasing tobacco excise by 5 per cent above inflation.

While tobacco smuggling may be costing £1.5bn in lost excise each year, this could not undo a policy on ciga- rettes for "good and urgent health reasons”, the chancellor said. But cigarette manufacturers who had hoped for a duty cut said the government had failed to recognise that high tobacco taxes were actually causing smuggHng.

• The Scotch Whisky Association was disappointed that tax had not been cut to help reverse the slide in UK whisky sales, saying there had been a drop in the UK mar- ket of around 7 per cent mainly “because shoppers are going overseas to France to buy cheaper whisky".

MOTORING AND FUEL

Tax cut on smaller cars

Unleaded petrol will rise by 3.79p a litre, taking average prices up to around the 67p a litre mark - about £3-04p ($4.89) a gaflon. Leaded petrol goes up 4_25p a litre to around 74.4p a litre; diesel rises 6.14p a litre to nearly 71p a litre. The annual car tax disc wifl be reduced by £55 from the current £150 for smaller cars from June 1. The rate for other care will rise by the level of inflation. Mr Brown said the duty would be frozen for 98 per cent of all bucks, and the Bee nee fee cut by up to £1 .000 for trucks and buses with clean engines. He also announced a reform of com- pany car tax to encourage the use of fuel-efficient care. This reform, he said, would cost the typical user about £1 a week. To cut pollution, employees will be able to get tax-free benefits from employer-run or employer- gufrgiHkiaH buses, car-sharing schemes and other environ- mentally-friendly means of getting to work.

FILM INDUSTRY

Extended tax break welcomed

The news that Mr Brown Men* to ^attend tto 1 ance available for new films made in the UK for anomer two years until July 2002 was welcomed by rthe rfflrr imIus- try MrBrown originally unveiled proposals to rflwM tot the production or ecquMton costs

RaWSth°m’ LOnd°n

INVESTMENT TRUSTS

Buy-back rules set to ease

tfons on investment |nvestment

with the publication Profits to ***

mist companies SiEkm their trust

back thefr shares withouttevmg a ^ 0f 1985.

status under change profits'

investment oompanw ^°JJ|BStjnent income to repur- such as dividends and oto^inv^ profitsfrom

chase their own ^*5X3* McCartney.

Increases in the was “unnec-

an industry mto^. sari

essanly restncbve".

growth later in the year to which the monetary policy committee will be forced to respond by raising rates.”

The benchmark 10-year gilt fell by around half a point, pushing up the yield by about 5 basis points. Kevin Adams, gilts analyst at Barclays Capital, said the gilt market could face fur- ther weakness, especially at the short end of the market.

Short sterling, the mar- ket's vehicle for speculating on interest rate changes, fell on the back of the Budget, indicating that traders thought tbe chance of fur- ther rate cuts had been reduced. However, the con- tract still indicates the possi- bility that base rates will foil from the current 5.5 per cent to 5 per cent by September.

The equity market reacted rather better, with certain stocks and sectors benefiting from the expected boost to consumer spending. The FTSE 100 index, which was about 9 points ahead before Mr Brown began his speech, ended 28.9 points higher at 6.237.7.

Lex, Page 14; Currencies, Page 21; London Stocks, Page 28

Measures send clear signals that feared reforms of tax and avoidance rules are to be dropped, writes Jim Kelly

Thei sm in

here was good news for small and big business the Budget with a new lop corporation tax starting rate for 270,000 growing companies and clear signals that much feared reforms of capital gains tax and avoidance rules are to be ditched.

As expected the chancellor trumpeted already announced cuts in corpora- tion tax to 30p - and 20p for small companies - but in a surprise move Introduced a lOp rate for companies with taxable profits up to £10,000, tapered up to £50,000.

The chancellor took the opportunity not only to draw favourable comparisons with the UK's main economic competitors but also to hint that more good news might be on the way for industry: “For the life of this parlia- ment the rates will be 30, 20, and 10 or lower.”

But there was much better news for large companies buried in tbe government’s background statements to the chancellor's speech. Wholesale reform of capital gains tax for companies has been dropped following an angry reaction from industry which feared complicated

changes mirroring those for personal capital gains.

And the Treasury also gave the clearest hint yet that it may drop plans to introduce a General Anti Avoidance Rule (GAAR) which wouid give the tax authorities power to stop transactions constructed to limit tax bills.

The chancellor said it remained an “option” to bring in a GAAR “if more targeted legislation proved Ineffective" - “but the gov- ernment would not be pro- ceeding with a GAAR in this Budget or with a mini -GAAR for VAT on construction ser- vices".

“Big business will be extremely relieved - this is wonderful news,” said lan Barlow of KPMG. “CGT reform would not have worked and the GAAR could have undermined many ordi- nary commercial transac- tions."

“We are delighted with the announcement on the GAAR - it looks like a signal that they will quietly drop it in the longer term,” said Doug- las Fairborn, head of tax at Ernst & Young.

On personal capital gains tax, the chancellor said his

earlier reforms were designed to reward long term commitment with a lOp rate. He announced that by April 1 the first £7,100 would be free or CGT. “This mea- sure will exempt 10,000 more people from CGT alto- gether," he said in a fillip for small businesses.

In another measure which

will particularly help owners of family businesses, the chancellor raised the thresh- old at which inheritance tax at 40 per cent bites to £231,000 from £223,000 although stricter measures for hitting avoiders will be brought in and loopholes closed.

As visual, the Budget con- tained a raft of specific mea- sures designed to tackle cor- porate tax avoidance. “The budget included a ragbag of specific avoidance measures. At first sight the VAT group- ing changes look less draco- nian than feared," said Paul George, tax partner at PwC.

Other measures include:

• Existing rules will be extended to stop artificial techniques designed to strip value our of subsidiaries prior to their sale to avoid tax.

Loopholes in the rules for North Sea corporation tax and petroleum revenue tax which could be exploited by the sale and leaseback of assets will be closed.

• New tighter rules will be bought in to prevent compa- nies avoiding tax by chan- nelling UK dividends via controlled foreign companies (CFCs).

• Legislation will be intro- duced to tax sums paid by landlords to induce tenants to take out a lease - so-called “reverse premiums". While

the use of these was wide- spread when property values collapsed in tbe 1980s they are far less frequently used now.

• A whole range of anti- avoidance measures to pro- tect VAT will be introduced including measures targeted on construction services. Wholesale reform of the laws covering VAT Groups - which allow related compa- nies to rationalise their pay- ments - appears to have been sidelined after wide- spread opposition, but lim- ited reforms are proposed.

• Tbe government con- firmed it is to close a loop- hole which allowed UK com- panies to avoid paying Stamp Duty Reserve Tax in mergers or acquisitions involving foreign currency bearer instruments. Other aspects of the SDRT regime are to be tightened up.

onal £250m in a full year.

IPT applies to motor, prop- erty, travel, and extended warranty policies. But it is not applied to life cover

Tax relief plan for intangible assets

By Alan Cane and Kevin Brown

Tbe government plans tax

relief on the costs of buying licences to offer the next generation of mobile phone services in a move with sig- nificant implications for cap- ital investment in intellec- tual property.

Under current legislation, the cost of a mobile phone licence would not qualify for capital allowances because it is defined as an intangible asset Now the chancellor is proposing to offer tax relief over the 20-year life of tbe

licences. Legislation will be introduced in 2000.

The government is plan- ning to auction four or five licences for the next genera- tion of mobile phones early next year with the aim oF raising a minimum of £1.5bn ($2.4bn) for the state.

Pam Jackson, international tax partner at PWC. said the UK was lagging behind other countries in the treatment of intangible assets. Ms Jack- son said US companies, for example, could acquire such property in the UK and then write it off against profits in the US.

9:12 A. At NEW If 077 K

The- bunks are UvftUb sunn a.

worlcUta unilv cost outers from, ivrocuul the- a lobe.

j _/

Wit It solutions like - ours,

they ndykt as well be from around rise corner.

; K-

d 1 ' .VrP

mf C

bj • T -.13	! • j .JM
■if !■

r itM
LJ .JJ
.( M	'iiJu
*TM	) Wll ItM ]
; ' f /JtM	j- » iJ
J w~

t - ' Mr

W-w, .

TJv r»7i .

aw i

WAMG

vvw vv.wang.com, finoncialsolutions^uk

.-‘jvjH.r.rrrr r.n v- ' r

jfdnWWr. ’ ‘ ,

)le

'te- Since as been >f which - Proles- ier shift

s going fovotny. loss not Jr a pro- present next 10

’nitially ■out 40Ci

.-action

ing 3 Qit. By tribute n.

is are armed ibstan- ime of

t was 1.9 per prod- and is next

lis is I and re is ■cure- : the d to ■mes- light next

FINANCIAL TIMES WEDNESDAY MARCH 10 1999

SCIENCE & TECHNOLOGY

BOOK REVIEW GENETICALLY MODIFIED FOODS

Worm at the heart of the blossom

Two US scientists have joined the attack on scale of agriculture’s genetic revolution, says

the speed and

Vanessa Houlder

AGAINST THE GRAIN The genetic transformation of global agriculture

Marc Lappe and Britt Bailey

Common Courage Press Si 4.95

Opposition to genetlcally modlfied rood has been rela- tively muted in the US. But last week two Californian researchers published a vig- orous attack on the speed and scale of the revolution.

Their book's message is that the genetic revolution in agriculture has not been accompanied by sufficient consideration of long-term concerns. The authors, who work for the Centre for Ethics and Toxins in north- ern California, argue that GM crops are being intro- duced on too large a scale, too quickly and with too little oversight

One problem, says Marc Lappe. a pathologist who co- wrote the book with Britt Bailey, an environmental scientist, is the growing power of a few agrochemical companies, perpetuating the trend towards monoculture, in which a single variety of a crop is grown on a vast scale.

This could have severe consequences for genetic diversity, increasing the risk of epidemics which - as the 19th century Irish potato blight showed - are more likely to occur among geneti- cally uniform food crops. The need to maintain genetic diversity makes a case for setting aside a per- centage of global crop acre- age to house non-engineered seeds. Mr Lappe says.

The authors are also anx- ious about the “short- sighted" overuse or particu- lar GM crops. They say it “is reminiscent of the eariy days of the antibiotic revolution", when antibiotics were put to relatively trivial uses that resulted in the emergence of antibiotic- resistant strains.

Their concerns are focused on crops engineered to pro- duce a toxin called Bt (Bacil- lus ihuringiensis). which con- trols insects while greatly reducing the need to use pes- ticides. They fear that over- use will make insects toler- ant of the toxin, which is widely used by organic farm- ers. “Over time, perhaps just one or two growing seasons, what has been an ecological miracle may become an eco- logical disaster." they argue.

The book also argues that the GM revolution will lead to far greater reliance on a small number of herbicides. In one case, it argues, regu- lators have overlooked the potential residual toxicity of an important breakdown product that could enter the human food chain.

The authors have other worries about the health risks of GM foods. Boosting the activity of a gene that makes critical amino acids may. in addition to confer- ring resistance to a herbi- cide. change the plant’s metabolism, creating by- products called isoflavon- oids. These have similarities with an important set of human hormones called phy-

Union

CAL

34 Bom- Serna - lateral Doing Free Rat-Time Priw» - Comprtitlvr Cammisdore

0171

283

Website: Impi/iKvn juuoncal.co.ui;

e-nuil. pioy » hi Lakers uhictko! com

£ 8333

FUTURES OPTIONS & FOREX

[ERKELEY FUTURES LIMITED

ROTATE CLIENTS WELCOME

38 DOVER STREET, LONDON W1X 3RB

TEL: 017J.629 1133 FAX: 0171 495 0022 HE hupU7www.blLco.afe *i-*f

"Futures & Options "Online Trading ■-Margined FOREX

*5- *22

LIND-IVALDOCK & COMPANY

M:s CiiiMvr!! St. - L.IH.I..I1 i:(UY Uf|

Future* & Options, raud-turn Iiwrttnrtwnl service hr prints rflnify

0800-262-472

London 0171-247-1701 Germany- 013O-S1&I0O Srontind: 08 00 560339 wnrJind-waModLcmn

mini

REUTERS

IndexDirect

low Stdcm-limited Risk

FINANCIAL

SPREAD BETTING ,

, FREEPHONE 0800-358-3599

r.indexdirect.co.ok

&MbWwd h 19TB OCR* haa X offiew wcrtl wida m 750 nadyanad* ampulla* araMta.

For 100 pap* FREE coin* brochva E-nrt; IMMiMOoan.com or contact HUOPNJM OMUIWHT.cn Ttfc .44 1DII1BU FumiWIim

LOKHK BCHMO T COOK, B5c M «M 171 JUIPM Fas T 7100 301 7

LUXEUBOUO. EVEIME HAULS lafc JSS12H Hoc .US 2» 2*7

MAO BRA DH3KE DEMOTE! *. ncMWus Ut-M I 01 901 na Fu^U1ll]I714t

HOMQXOKfc BART O 0EKXEH. uu Tat a&Z2au 172 Fn. -0VIS21 1100

USA- MCSLkZ KEVHHttCn. &* TM: -I 7T4 BT1 JMi tac.in<miU

Wo of Man and London 000002 CwMeatcd A Mantel at 9n EaaKa and Qanoral Group Em. 1935

■0 rev

I WORLD WIDf

Argus Global Markets

Petroleum Argus

Free trial (44 :71 i 359 S792 hue:. ;vv.w eet'oleuresrc'js.ccrr

Live Screen Trading

Equity Index FUTURES smd OPTIONS Worldwide 2-Second Fills Lowest Commissions Live Prices Live Charts Live Account Statements Interact wtih the S*P 500. DAX, STX, and SMZ

www.interactivebrokers.corn

If you would like to advertise, or require any further information, please contact: Sherie Donovan

let: 0171-8 73-492S Fax: 0171-373^296

to estrogen, which may have implications for soy-based dairy foods - and particu- larly baby milk formula.

Mr Lappe says his work suggests that, if anything, levels of phvtoestrogens are lower in genetically engi- neered varieties than in con- ventional varieties. “It can cut both ways,” he says. But it underlines the case for assuming that there may be differences between GM crops and their non- engineered counterparts.

He argues for a “wholesale review of the regulation, testing and inspection of all engineered crops**. The fail- ure to label GM foods is the "ultimate foolhardiness" because it makes it impossi- ble to track transgenic crops in the food chain for possible adverse effects.

The perception that the US regulation system is tough is wrong, he says. The interac- tion of the Department of Agriculture, the Food and Drug Administration and the Environmental Protection Agency creates a regulatory “patchwork quilt" in which each agency

fO. IT &3ESUT M^IT/aO

ANVtwnk; on rm uabb-

All Futures, Options & Stock Options

Trade Shares on Margin Long & Short - 0.25*. commission

FtTURg. Sc Options Cooticr Jjmai AQm TcL 0171 .07 3999 Email. co life

S HAMS

Contact: Philip Adto

Tet 0171 3373516 ennui- cffeOgnLco-nk

Website:

Member uf die Uxnkn Stock Exdaoye

ED&F MAN DIRECT I

E r& r -ta tv.. utaitB J l F hmaanui Id >U>nl *»>

■ ■Jkaa*adt9aWJI.I

Leading International tax planning Him, oflera tuH aorvice. Qpfl LbwIhi: a A. Smith B.Sc. (Hons) fat + 44171 M2 2274 fVK IM Big Peter Morphy a Comm. Tel: + 3831 682 1388 -gOBr E-oaB: ilhtoigiwiMpAM Ihbiteii— JitgupAWi 'svp . 90-100 STOREY ST, UMBOS 3W3 UU, UK SCFHOV

TtTl:

www.forex-cmc.co.uk]

tree market info/frae trial/visit site or caO +44 1892 B3SSS0/24&a

The FT GUIDE TO WORLD CURRENCIES, published in Monday’s newspaper and covering over 200 currencies, is now available by dialing the following number 6mm the handset of your fax machine, 0006 843 TOOL Calls are charged at 60p per minute at all times. For service outside the UK please telephone 444 171 87 3 4378 for details on Qryline International

SHARES mX FREE* TTRTndex www.Igfmkiauco.iik ei 0171 663 0896

FOREXIA — irmra I

TEL ■*44 181 9J8 8310 WWW.forBXia.CO m FAX ->44 1B1 B4fl B488 I

Commercial Data International, Inc.

Economic Frofiles with Free Cn-Mns* News Updated Daily 191 countries, $39.95 -:JS each, Regional. WorJa Set; Discoi

1 h H p : / / w w w . c o m d □ 1 i n t . c o m

Fhone: C 7 ’ ..>) 355-65C0I

From Dutii BroudcaM in'> < urijnratioi

REAL-TIME DATA ON YOUR PC

• T‘ J-^"‘~tr ttnnili nuiaiitlai

ALL AMERICANS ♦ FOREX ♦ EUROPEANS * NEWS * CHARTS

IN YOUR COUNTRY NOW 70 Countries across Europe, the Middle East and Africa - from Iceland to Moscow, from Finland to Yemen

DBC

www.dbceuro.co_m Tel+44171793 3100

If you would like to advertise, or require any further information, please contact: Sherie Donovan

Tel: 0171-873-4928 Fax: 0171-873-4296

can duck responsibility.

In this litany of concerns about regulation, there might be a risk of under- stating the potential benefits of genetic engineering. Per- haps the most powerful argument of the technolo- gy's proponents is that It offers a promising approach to feeding a growing world population while reducing damage to the environment.

Mr Lapp£ agrees there is a need for a generation of more productive crops, but says agrochemical compa- nies have so far developed fewer of these crops than their rhetoric suggests. The problem, he says, is that short-range economic consid- erations have driven the selection of genetic products, rather than choices based on long-term objectives or pub- lic benefits.

Mr Lapps admits to some pbi]flisnphir»i qualms about GM crops. But he insists that he is arguing Cor more public accountability and control, rather than outright rejection. “This isn't a book of blanket opposition to the technology. There might be real advantages. But there are legitimate questions to be asked."

Watch your step: Tecnomatix' a software program lor an electronics assembly Dns aHow

INFORMATION TECHNOLOGY MANUFACTURING SOFTWARE

potential bumps and coUatons

Virtually perfect

Electronics manufacturers are borrowing from motor industry _ experience to get production right first time, writes Avi Machlis

Pit Is often difficult for manufacturers in the electronics industry, where new products are released every few months, to think about changes to production and design pro- cesses.

But in recent months 10 large electronics companies, including Toshiba of Japan. Bosch of Germany and Nokia of Finland, have started experimenting with virtual manufacturing soft- ware that has already made a big impact on the automo- tive industry. These technol- ogies allow companies to build realistic three- dimensional simulations of factories, eliminate potential production errors end save precious time in the hectic race to market “The manufacturing industry, and electronics [in particular], are looking for ways to accelerate time to market and optimise end-to- end process chains," says Bruce Jenkins, vice-presi- dent of Daratech, a Boston- based market research Sim for the computer-aided design, manufacturing and engineering industry (Cad Cam/CAE). “They are begin- ning to wake up to the opportunity that exists in the manufacturing and pro- duction engineering area.”

Cad technologies are already widely used in many industries. Automated pro-

duction is also widespread. But in recent years, Deneb, a US subsidiary of Dassault Syst&mes, Electronic Anima- tion of Iowa and Tecnomatix of Israel have introduced Cape, or computer-aided pro- duction engineering. Das- sault and EA are still focused mainly on the auto- motive and aerospace indus- tries. while Tecnomatix is leading the way into the electronics industry.

Tecnomatix hopes for a boost in its drive to pene- trate new markets from Parametric Technology (PTC), the Massachusetts- based company that is the biggest in the mechanical Cad Cam market. PTC announced yesterday at an industry conference in Chi- cago that it will Integrate Tecnomatix tools into its WindchiH suite of software for management of product and process life cycles.

Cape enables companies to streamline design of produc- tion processes, for example, by building three- dimensional computer simu- lations of assembly pro- cesses and production lines, complete with super-realistic images of rolling conveyor belts, robots and even human workers.

The Cape concept is to pin- point problems on screen, such as colliding robots or parts that do not fit In the past many of these mistakes

were caught only after costly trial and error.

Many electronics compa- nies have already invested heavily in Cad, Cam technol- ogies. Some have even intro- duced Cape technology for planning printed circuit boards. Until now, though, the planning of manufactur- ing has usually been worked out by hand or using tools developed in-house.

Harel Beit-On, Tecnomatix chief executive, says: “We recognised the same pattern

The concept is to pinpoint problems such as colliding robots or parts that do not fit

that we saw 10 years earlier in the automotive industry - There was something missing in the middle [between prod- uct design and manufactur- ing]."

Electronics companies will find it hard to ignore the benefits reaped by many car manufacturers. For example, Nissan, the Japanese car- maker. is cutting its new product cycle from between 20 and 25 months to 12 months with the help of Dynamo, a Tecnomatix pro-

PAUL TAYLOR IN LONDON

VIEWPOINT® FT

Route towards a third way

A new model promises cheaper internet access as service providers are encouraged to abandon subscription charges

The cost of accessing the internet has typically comprised two elements for dial-up consumers: a monthly subscription charge payable to the internet service provider and the per -minute cost of a local telephone call payable to the telecoms provider.

Two main business models have emerged: the North American one in which most local calls are free but internet users pay a relatively high monthly subscription charge: and the traditional European model In which monthly subscription charges are relatively low but local call costs are high.

Now, however, a distinct third model has emerged in the UK, where Dixons1 success with Freeserve, Us subscription-free service, has spawned lookalikes and encouraged a number of gristing ISPs to abandon their monthly subscription charges.

Freeserve has managed to attract 1.3m users (one in five UK internet users) since its launch In September, far outstripping the wildest estimates and making it a | focus of interest.

On the face of it, Freeserve and Its rivals represent an Interesting alternative for consumers tired of paying a flat monthly subscription fee that ranges between £7.50 and £15 ($12 and $24) a month, together with per-mlnute connection costs.

But as Eckard Pfeiffer. Compaq's chairman, reminded us recently, there

is no such thing as a free lunch. Freeserve and its rivals plan to recoup their costs through advertising and revenuesharing with the telecoms provider that connects the local nail, for which users continue to pay.

Dixons expects Freeserve to break even next month, six months earlier than planned. In the meantime, however, the success of the model has forced telecoms providers and ISPS to re-assess their options.

Just how readily the subscription-free model can be transferred outside the UK will depend on local marker conditions and national regulator environments. There are already similar services in France and Germany, and NetZero has set up a subscription-free service in the US.

In the UK one of the more bizarre - and greedy - reactions came from British Telecommunications, which told Oftel, the UK telecoms regulator, that it should be allowed to keep a higher proportion of the local call charges paid by subscription-free internet users. Simultaneously, BT removed the lp-a-minute charge it was making for its own internet access service. Click.

Some leading Independent ISPs in the UK believe they win be able to continue to charge monthly subscriptions for advertising-free, high-quality internet access and will boost their revenues by offering other services. But others are already preparing to jump ship.

INFORMATION TECHNOLOGY • Tlw FTs review of Information Technology appears on the first Wednesday of each month

As noted by Philip Lakelin, one of the authors of a report from Cambridge-based Analysis on competitive strategies for independent ISPs, independent ISPs face a rough ride over the next few years as competition Intensifies in the rapidly expanding worldwide market for Internet services.

Independent ISPs occupy a precarious position in the internet supply chain, acting as Intermediaries between the owners of the transmission networks over which internet traffic flows and the owners of content on the web. Maintaining this position requires them to compete in both the infrastructure business and the service-supply business.

Mr Lakelin says: “Over the next five years independent ISPs will find themselves increasingly required to Juggle the requirements of these two different business models.'’

Aside from the threat posed by subscription-free services, independent ISPs face growing competition ! from the established telecoms operators, while on the services side companies such as America Online and Yahoo! are redefining themselves as portals and shifting their main source of revenues away from basic access towards content-related services.

This suggests that with access margins continuing to be squeezed, dial-up access providers that fail to achieve at least 300,000 subscribers are unlikely to survive in the long term and that a much larger subscriber base will be required for ISPs relying heavily on advertising.

In the meantime, the regulator agencies, should

help foster competition by ensuring that telecoms services are “unbundled” and that dominant telecoms providers are unable to use their market might to crush their much smaller rivals.

At first sight, fixing the Year 2000 computer date problem is a no-win exercise. At best it leaves an organisation just where it started, able to continue its operations. But It need not necessarily be that way.

A study by PA Consulting confirms that anticipating the mlilpnirinm hug haa

created significant disruption and taken resources away from creating value-added IT for organisations.

However, the study also suggests that some organisations have seised the opportunity to revitalise the deployment of IT within their business. 'Tt is a - golden opportunity to upgrade, upskill and gain - competitive advantage from IT," the fiwflwrfai controller of a manufacturing company told the researchers.

Many companies have seized the opportunity to accelerate new investment in IT systems and infrastructure, replacing ageing networks arid ' enhancing systems.

The respondents, all of whom worked for organisations with trnnlia} turnover of more than £L50m, also noted that working relationships between business managers and the IT department improved, that resources are being managed better and that the importance of aligning IT to business requirements through an IT

strategy has been reinforced.

paid. taykmaiFT.com This column appears fortnightly.

'Mi*

"iftU

4nm

gram for assembly processes.

Mr .tonkins says: “I have no reason to think that the benefits won't be equally big, potentially, for the elec- tronics industry."

initial reaction from elec- tronics groups has been posi- tive. Toshiba has cut the moulding process of laptop computer carings from. 32 to 24 days using Valisys, a Tec- nomatlx tool for testing product tolerances.

Silicon Graphics, the US manufacturer of high-perfor- mance computers, is confi- dent that Tecnomatix will help it improve time-to- market and yield, “The systems are very graphical and use simple concepts," says a Silicon Graphics engi- neer. “It's also Intuitive and simulates the factory experi- ence.” Amid the enthusiasm, however, an engineer at one company noted: “It's expen- sive.”

While most car manufac- turers have large specialised engineering departments, electronics companies are often far less centralised To cater for this difference, Tec- nomatix has redesigned its tools to work on Windows NT operating systems instead of Unix, and a new product line. Tune, wffi be released in the next few weeks.

Amir Llvne, Tecnomatix vice-president bf marketing, says: “We wanted to meet the needs of those who don't want to spend two weeks learning a product"

aninvai

>-‘T? o •

Arts,

1%^

rV5-ri

ku ,T

financial times

Wednesday

MARCH 10 I99y

THE ARTS

Virtuosic spoofs enliven New York music

In 3 less-than-snazzv IqcrIp miaH-in d . .

Concerts, concerts n Bernheimer experiences the Eos Orchestra's 'Out There1 Music, including its latest commissioned piece, ‘Dracula1

Stellar symphonic concerts*1* °rchestTa’ a rather youthful

Costly concerts. Glamorous Tlie Venerable New York Philharmonic, under the safe, sane and often boring leadership of its incipient ex-Kapellmeister Kurt Masur

tends to Brahms and Beethoven at Lincoln Center. A long and glossy parade of visiting ensembles, representing cities from Atlanta to Zurich, annually wends its competitive way to Carnegie HaD. The guests play a lot of high-powered Tchaikovsky and Mahler and, like the resident orchestra, even venture a dutiful novelty once in while.

But, as is so often the case in musical New York, some of the most interesting events occur under modest auspices in less snazzy locales. Take, for example, the imaginative Eos

not-so- tittle band that specialises 113 Paying tribute to neglected masterpieces - and demi-masterpieces, too. Formed m 1995 by Jonathan Sheffer, an enterprising conductor who

forgotten oeuvre of Paul Bowles and Alexei HaiefT, tbe diverse compositions that have inspired the choreography of Merce Cunningham, and tbe changing faces of musical Americana as embodied by Gershwin. Copland

there” is ao example of adjectival slang, referring to “something unprecedented, beyond accepted norms." The selected vehicles by Charles Ives. Gy orgy Ligeti. David del Tredici and (are you ready?! Spike Janes

grateful for small favours.

Ives’ Three Pieces for Theater Orchestra invoked sonic landscapes from the turn of the century, terse tongue-in-cheek}' demonstrations of what can

_ uuuuur WD0 embodied by Gershwin. Copland and (are you ready.') bpike Jones happen when an iconoclast

The composer took his bows flourishing a

plays most of tts concerts in the churchly auditorium of the Society for Ethical Culture Central Park West. An uplifting message is emblazoned on the

on black and scarlet cape, no doubt imported

for the occasion from darkest Transylvania uemere

The Place Where People Meet * ‘

To Seek The Highest Is Holy and Bernstein. There was

wound. nothing solemn, however, about

several directions at once to the lusty clashes of disparate drummers. Ear-stretching remains a healthy exercise, even though Sheffer and his orchestra delivered the trash goods rather

In tbe past, Sheffer and friends nave deftly balanced lofty ideals against practical limitations, offering sophisticated

performances within a casual milieu. The tone was pervasively serious when Eos examined the

the eclectic programme splashed across the platform last Thursday eight.

The event bore a title: " Out Then-" Music. Sheffer likes descriptive catch-alls. Arroramg to the impresario-boss, "out

didn't prove quite as innovative, as important or as stylistically independent, as one might have hoped. The concert did. however, turn out to be engaging. And. mure important, perhaps, much of it was funny. In the dour world of orchestral experimentation, one must be

Their penchant for delicacy proved more useful in “Mysteries of the Macabre,” a conflation of several arias sung by Gepopo. Chief of tbe Secret Police, in Ligeti's fabulous opera of the absurd, Le Grand Macabre (1978). In an inspired flight of perverse anti -type casting, the composer assigned the parodistic

showpieces to a coloratura soprano. Hie stratospheric diva in drag chirps intricate bursts of filigree that could cause a Queen of the Night or Zerbiuetta to tremble. Tbe juxtaposition of otherworldly abandon and grotesque elegance creates a nice tension, a classic example, if you win, of the Ligeti-split personality in excelsis- liana Davidson surmounted every impossible vocal hurdle with charming ease.

The big premiere on the agenda took the sprawling, arch and rather inconsequential form of Dracula, commissioned by Eos from David del Tredici. An amiable spoof of yesterday's horror- film cliches it can hardly withstand comparison with the composer’s limpid, bittersweet evocations of Lewis Carroll. Alfred Corn’s vampirical text

leaves no room for introspection, and, for better or worse (probably worse), Del Tredici allows his soon-to-be victimised protagonist to spend a lot of time speaking and only a little time singing. This ludicrous “Liebestod” is outfitted with background busy-music and embellished with quaint sound effects. Wendy Hill brought panache to the meanderings of the sacrificial heroine. The composer took his bows flourishing a black and scarlet cape, no doubt imported for the occasion from deepest, darkest Transylvania.

Sheffer closed tbe festivities with three virtuosic spoofs from the rude pen or Spike Jones, low-brow relics of the daffy 1940s intent on demeaning high-brow hits. There was a burping medley billed as UA Goose to the Ballet Russe," a buzzing-Bizet deconstruction called “Car Men,” and “Shhl Harry's Odd,” which translates, of course, as uSh6herazade.M Everyone went home chuckling - well, almost everyone.

NEW YORK THEATRE

Annie loses her ammunition

The casting of Bernadette Peters in the new revival of Irving Ber- lin's musical Annie Get Your Gun caused some consternation when it was announced last year. Surely a star known primarily for her creamy skin, hourglass figure and lyrically pure interpretations or Stephen Sondheim could not fit comfortably into the rough buckskins of the Wild West sharpshooter Annie Oakley.

The complainers, so aware of the mark that Ethel Merman put on the part at its premiere in 1946, seemed to forget that Annie Oakley as written need not be all brass and sass. Both Judy Gar- land, who was fired from the movie version, and Betty Hutton, who replaced her, oozed the kind of vulnerability that Peters is

By trying to etch a psychologically wounded Annie, the show is robbed of its surefire charms

known for; and Barbara Stan- wyck, who played the real-life markswoman in the 1935 film Annie Oakley, also suggested that the character could be more than a rifle-toting tomboy.

In the Marquis Theatre revival, however, tbe problem is not Peters's softness, so endearing in songs like "Moonshine Lullaby", but the pacing of her perfor- mance. She succumbs so quickly to tbe charms of Frank Butler, her rival and erstwhile colleague in Buffalo Bill's Wild West Show, that we are deprived of the satis- fying conclusion that sparring of a more Beatriee-and -Ben edict nature would provide. By trying to etch a psychologically wounded Annie. Peters robs the show of its surefire charms, which to ignite must concentrate on less analytical qualities.

Where Peters excels is in vocal technique and comedy. She hits her high notes as confidently as her character picks off pigeons. She mines laughs from moments that are not obviously exploit- able: by sounding out the letters of Frank’s name as she learns to read: by addressing tbe Sioux chief who has adopted her as “Papa Bull", by pausing ever so

expertly after Frank insults her, then replying that he is a “swol- len-headed cham-peen".

Even this sublime silliness, however, is problematic. Each time Peters does a slow burn she adds to the sluggish pacing that is the production's main detri- ment. And each time her direc- tor, Graciela Daniele, allows her to re-tailor a jaunty song like “I Got the Sun in the Morning" as a doleful ballad she only adds to the enervation.

In the second-act number “An Old Fashioned Wedding”, we do glimpse how marvelous Berlin's material can be. The peacock- proud Frank, quite dashingly played by Tom Wopat. insists that his and Annie's nuptials stay simple. Annie craves osten- tation. As he refuses to budge, she mocks his position, dancing around him and miming post -cer- emonial rice-throwing. They engage in repartee with a quick- silver lightness one would like to transfer to their other songs.

As for their colleagues onstage, they at least look their parts. Ronn Carroll, double-cast as the innkeeper Foster Wilson and the impresario Pawnee Bill, resem- bles Louis B. Mayer and evinces that Hollywood mogul’s brand of benign imperialism. Ron Holgate. as Buffalo Bill, is suitably impos- ing. And Gregory Zaragoza, as Sitting Bull, amusingly mocks the white man's every folly.

To address the concern that this musical presents Indians in a ridiculously outmoded fashion, the producers enlisted the old Broadway hand Peter Stone to rewrite Herbert and Dorothy Fields's book. He trimmed a rac- ist song and the most offensive dialogue, and updated several ref- erences, including a hilarious section about many tribes’ late- 20th-century predilection for opening gambling casinos on their reservations.

But neither scattered comic pleasures nor the fluid delivery of some of the show's profuse array of standards can compen- sate for a misconceived central performance and direction so clueless that, in the evening's worst moment, disco-ish dry ice wafts onstage during the peerless lament, “Lost in His Arms". This white man say Ugh.

Brendan Lemon

OPERA IN MONTE CARLO

Two bites at the cherry

The only part of L'amico Frits most opera-lovers know is the Cherry Duet. Mascagni's most delectable music certainly asks for an encore, but the way it got one at this performance must be unique. The occasion was the Sunday matinee at the Opera de Monte Carlo, the second of just three performances of a new pro- duction of this rarely staged opera.

It was about two-thirds of the way through that number that the unthinkable happened. Angela Gheorghiu lost her place and for a minute or so she and tbe orchestra persevered down different paths. Finally, conced- ing that 70 musicians and a con- ductor cannot be wrong, she stopped and proposed an action replay of tbe duet from the begin- ning - something I have never witnessed before in 30 years of opera-going.

Everybody hastened to put a good spin on it. The orchestra hurriedly flicked back through their pages. Tbe prompter, possi- bly fearing retribution, redoubled his efforts and turned the rest of the duet into a trio. As the sing- ing had been so beautiful, nobody seemed to mind. All the same, I would not recommend that she repeats the trick at La Scala, Milan. Italian audiences are known to gobble up faltering sopranos as an antipasto.

As the two principals account for almost everything in the opera that matters, it is a good idea to hire singers who will pull in a crowd. At Monte Carlo Gheorghiu and Roberto Alagna caused a rush for tickets that must have made the annual Grand Prix look positively seden- tary. Over the past couple of years the husband -and- wife team has flown from one opera house to another on a jetstream of con- troversy. A succession of public stand-offs with producers and managements culminated in their now-famous joint sacking from the Metropolitan Opera in New York. “Les enfants terribles de l’opGra" screamed a cover story on a leading French music magazine on rale at the airport. Still, as the fresh young lovers of Mascagni's opera, they could not have been better cast.

The great virtue of L'amico Fritz is that it is not CavaUeria rustiama. the much more famous opera that preceded it. In place of

Coy's gutsy drama and crude musical style. Mascagni was keen to show bow cultivated a com- poser he could be and the conver- sational delicacy of much of this next score is skilful and elegant, especially in the Cherry Duet.

To put this little incident behind them, both went on to give 110 per cent. Alagna, return- ing to a theatre where he made some notable early appearances, sang with ardent tone to make a □ear-ideal Fritz. Gheorghiu's Suzel may have lacked Latin warmth, but she knows exactly how to colour a phrase and there are signs the voice is growing- bigger and stronger. Mascagni

It was about two thirds of the way through that number that the unthinkable happened

barely gives the rest of the cast a look-in, but Anna Bonitatibus seized her brief opportunities as Beppe and Lorenzo Saccomani did what was needed as David. Cupid's match-maker.

The conductor, Evelioo Pido, gave a flaming performance of the Act 3 Prelude, but fortunately managed to keep his cool when his leading lady demanded that he stop the show and start again. The other big interest of the pro- duction was seeing the work of the other half of the Alagna co- operative, designers David and Fredfirico. Roberto's brothers. At this point the management of the Metropolitan Opera has to stifle a chuckle, as it brought down the guillotine when Roberto tried to suggest that his brothers take over La trmiaia in preference to the Met’s choice, a certain Franco Zeffirelli. In the event, the sets for L'amico Fritz were solid and conservative.

By the end there was plenty to be thankful for. The curtain fen to enthusiastic cries of “Bravi!". "Roberto!”, "Angela!" - every- thing except “Encore!" - but then we bad heard the hit num- ber twice already.

Richard Fairman

«te. Since as be*n )f which - profes- ier shift

s going ■iovotny. loes not >r a pro- presem next 10

•nitially ■out -wo ^action ing a nit. By- tribute n.

ts are

armed

ibsian- ime of

t was '.9 per prod- ind is ne>rt

iis is 1 and

re is ■cure- : the d to ■mes-

light

INTERNATIONAL

Arts

conducted by James Levine in Mahler’s Symphony No. 3. With mezzo-soprano Michelle DeYoung, women of the Symphony Chorus and the Glen Ellyn Children’s Chorus; Mar 11, 12, 13

Guide

BERLIN

OPERA

Deutsche Oper Tel: 49-30-34384-01 Rise and Fall of the City of Mahagonny: by Kurt Weill, libretto by Brecht Neiw staging by Gunter Kramer, conducted by Lawrence Foster, with designs by Gottfried Pilz and Isabel Ines Qathar; Mar 11, 14

sffe: by

icted by Bruno rival of Liliana , first seen in ! ago. The cast is pqfij and Alberto

OPERA

Lyric Opera of Chicago Tel: 1-312-332 2244 www.tyricopera.org Die Meistersinger von Nflmberg: by Wagner. Conducted by Christian Thielemann in a staging by Kurt Hones, with designs by Andreas Reinhardt Mar 10, 13

DRESDEN

OPERA

Semper Oper

Tel: 49-351-46420 Ariadne auf Naxos: by R. Strauss. Conducted by Colin Davis in a new staging by Marco Arturo Mareili. Cast includes Susan Anthony and Jon Villars; Mar 14

EDINBURGH

CONCERT Queen's Hall Tel: 44-131-668 2019 Scottish Chamber Orchestra; Andrew Litton conducts the world premiere of Robin Holloway's Double Bass Concerto, performed by Duncan McTier. The programme also includes works by Dvorak and Schumann; Mar 11

LAUSANNE

OPERA

Op6ra de Lausanne, Theatre Municipal Tel: 41-21-310 1600 Dido and Aeneas: by Purcell/ Curlew River by Britten. Double-bill conducted by David Stem, with the Purcell staged by Marcel Bozonnet and the Britten by Yoshi Oida; Mar 12, 14

LONDON CONCERTS Royal Festival Hall

Tel: 44-171-960 4242

• City of Birmingham Symphony Orchestra; conducted by Simon Rattle in Nicholas Maw's Odyssey: Mar 15

• London Philharmonic Orchestra: conducted by Josd Serebner in a programme including works by Stravinsky. Piazzolla, De Falla and Rodrigo. With guitar soloist Slava Grigoryan and castanets soloist Lucero Tena; Mar 12

• Philharmonia Orchestra; conducted by Christoph von Dohnanyi in Mahler's Symphony No. 9: Mar 13

MILAN

EXHIBITION Palazzo Reale

Tel: 39-02-8691 5738 L'Anima e il Volto: (The Soul and the Face): major exhibition of portraiture, comprising 370 works ranging over 400 yearn; to Mar 14

MUNICH

CONCERTS Philharmonic Gasteig

Tel: 49-89-5481 8181

• Bavarian Radio Symphony Orchestra: conducted by Lorin Maazel in works by Mozart and Bruckner. With piano soloist Murray Perahia; Mar 10. 13

• Munich Philharmonic Orchestra: conducted by Gianluigi GeJmetti in his own Prasanta Alma, and in Rossini’s Petite Messe solennelle;

Mar 11. 12

• Philharmonic der Nalionen: conducted by Justus Frantz in works by Beethoven; Mar 14

EXHIBITION Haus der Kunst

Tel: 49-89-211270 Art Across Borders: Classical Modernism from Cezanne to Tinguely and World Art - as seen from Switzerland. Display of the collection made by Swiss recluse Josef Muller (1887-1977), which combined European modernism with classical antiquities and pre-Colombian art. Includes works by Cezanne, Kandinsky and Miro; to May 30

OPERA

Bayerische Staatsoper Tel: 49-89-2185 1920 wvm.staatstheater.bayem.de Katya Kabanova: by Janacek. Conducted by Paul Daniel in a staging by David Pountnsy, with sets by Stefan os Lazaridis and costumes by Marie Jeanne Lecca; Mar 12, 14

NAPLES

EXHIBITION

Museo dr CapocHmonte

Mattia Preti between Rome,

Naples and Malta: first of three special exhibitions marking the 300th anniversary of the death of Mattia Preti (1633-1699), the southern Italian painter known as 'll Cavaliere Calabrese'. The show emphasises the influence of Caravaggio, and includes about 60 paintings and 30 drawings by Preti and his contemporaries; to Jun 11

NEW YORK

CONCERTS

Avery Fisher Hall, Lincoln Center

Tel: 1-212-875 5030 www. Sncolncenter. org New York Philharmonic; conducted by Paavo JSrvi in works by Paul Crest on, Bartok and J. Brahms; Mar 11, 12, 13

OPERA

New York City Opera, New York State Theater

Tel: 1-212-870 5570 www.nycopera.com Lizzie Borden; by Jack Beeson. New production conducted by George Manahan in a staging by Rhoda LBvine, with Phyllis Pancella in the title role;

Mar 10, 13

PARIS

EXHIBITION Mus£e d'Orsay

Tel: 33-1-4049 4814 www.Musee-Orsay.1r Edward Burne-Jones: major retrospective of the British pre-Raphaelite painter, which forms the mainstay of the museum's ‘saison anglais’; to

Jun 6

OPERA

Opera National de Paris, Palais Gamier

Tel: 33-1-43439696 www.opera-de-paris.fr La Clemenza di Tito: by Mozart Conducted by Ivor Bolton in a staging by Willy Decker with designs by John MacFariane. Cast Includes Theo van der Walt and Christine Goerke; Mar 12, 15

PORTLAND

JAZZ

Schnrizer Concert Hall

Tel: 1-503-248 4335 Lincoln Center Jazz Orchestra; America in Rhythm and Tune. First date of the Duke Ellington centennial tour, led by Wynton Marsalis; Mar 10

ROME

EXHIBITION

Galleria Nazronaje d'Arte Modems

Tel: 39-06-322 981 Picasso 1937-1953: The Italian Years. Around 70 works, Including paintings, sculptures, ceramics and drawings, from the period between 1937, when Guernica was shown at the Exposition Unh/ersetle in Paris, and 1953, when Picasso himself organised major exhibitions In Milan and Rome. Includes loans from the Picasso Museum in Paris; to Mar 14

SAN FRANCISCO

CONCERTS

Davies Symphony Hall Tel: 1-415-864 6000 San Francisco Symphony and Chorus: conducted by Herbert Blomstedt In Bach's SL John Passion; Mar 11, 12. 13, 14

SEATTLE

OPERA Seattle Opera Tel: 1-206-389 7676 www.seaWeopera.org Vanessa: by Samuel Barber. Conducted by Yves Abel in a staging by Sharon Ott The title role is sung by Sheri Greenawald/Ashley Putnam; Mar 10, 13

TV AND RADIO

• WORLD SERVICE

BBC World Service radio for Europe can be received in western Europe on medium wave 648 kHZ (463m)

EUROPEAN CABLE AND SATELLITE BUSINESS TV

• CNN International Monday to Friday, GMT;

0630: MoneyRne with Lou Dobbs 13.30: Business Asia

19.30: World Business Today 22.00: World Business Today Update

• Business/Market Reports: 05:07; 06:07; 07:07; 0820; 0&-.20; 10:20; 1120; 11:32; 12:20; 1320; 14:20.

At 08:20 Tanya Beckett of FTTV reports live from UFFE as the London market opens.

FINANCIAL TIMES WEDNESDAY MARCH 10 1999

- 1?^’’

COMMENT & ANALYSIS

MARTIN WOLF

Unreal remedy

'.The IMF is prescribing masochism for Brazil. Britain, post-ERM, suggests that there is an alternative way to the market’s heart

On September 16 1992. sterling1 was released from the exchange rate mechanism of the European monetary system. In the 'course of that turbulent day. the UK authorities briefly raised the base rate of ■interest from 10 to 15 per cent in a futile attempt to ward off devaluation. This -attempt failed. Once out of the ERM, interest rates fell progressively, to a low of 5.25 per cent in early 1994.

’ For the British economy, ■this was a turning point. As the chart shows, the exchange rate fell sharply at first but soon stabilised. Inflation remained subdued. Most important the economy proceeded to stage a strong recovery, with output expanding 23 per cent in the year to the third quarter of 1993 and then 4.9 per cent in the year to the 'third quarter of 1994. So strong a recovery could not have occurred without lower 'interest rates.

It is a happy story. It need not have been. The UK "might have been in the hands of the Internationa] Monetary Fund. If the IMF had run true to form it would have insisted on higher rates. It is even easy to guess its argument. The UK. the IMF staff would

have noted, was a country with a poor record on inflation and a long history of currency depreciation. The fiscal position was also deteriorating swiftly at that time. Now that the exchange rate anchor bad failed, the UK had to regain lost market confidence. So what would good Or Fund have proposed? Higher interest rates. With higher rates, the ! economy in collapse and the fiscal position worsening, the Lord knows what a mess the UK would have become.

A nightmare? Certainly, i Inconceivable? Hardly. The IMF’s canonical view on interest rates in a currency crisis is clear and brutally simple. By definition, it argues, the country’ is suffering a loss of confidence. It runs the risk of being caught in an inflation-devaluation death spiral. Moreover, the risk of such a spiral arises almost Irrespective of the country’s record. Indeed that point is explicitly made in the IMF’s assessment of its performance in the Asian crisis.* Higher real interest rates are. argues the IMF. a necessary condition for restoring lost confidence.

This view then is why the course of interest rates in Brazil, as shown in the

Two responses to devaluation: interest rates up m Brazil , . ,

Exchange rate versos dollar ^ hflattoo rate* (M

into Jan 1 1998= 100 v-v FnteresJ rates** (t0|

100 _ 60

chart, has been so different from that in the UK. High interest rates were used, unsuccessfully, in the foolish (IMF and US- backed) attempt to sustain the Rears dollar peg. this having been Brazil's biggest error. But things grew worse, not better, following the floating of the Real on January 15. Short-term rates were then raised steadily, from 29 per cent in mid-January to around 39 per cent by the beginning of February. They then jumped to 45 per cent on March 4. The panic continued, all the same.

Do not forget that until the shock of the devaluation,

1 inflation had been low in Brazil, as the chart also shows. The real interest rates Brazil has suffered have been inconsistent with healthy economic growth. Now they will help generate recession. Hie latest Brazilian economic memorandum, accompany- ing the agreement with the IMF announced on Monday, suggests the economy will now contract by between 3.5 and 4 per cent this year.** Experience suggests that this preliminary assessment of the results of a devaluation-cum-higb- interest rate package will prove too optimistic. JJP.

Exchange rate vosas DSfl w index Jan i 1992 = 100

105 " I

Morgan already forecasts a contraction of 5.5 per cent of gross domestic product in 1999.

So Brazil, here comes recession, ft is horrifying to think this is the best the economics profession can come up with. For what the IMF is saying (to acclaim from market participants, central banks and ministries of finance around the world) is that the only way for a government to restore market confidence is to , demonstrate Its willingness , to inflict misery on itself and | its society. This Is. in short, i a masochist’s route to j credibility.

It would be unfair to say there is no defence for such a policy. Higher real interest ! rates do increase people's > willingness to hold a 1 currency, other things being equal. But note that the annualised rate of interest required to persuade people to hold a currency expected to depredate by 1 per cent a day is over 3,500 per cent, not 45 per cent. Note, above alL that the extent to which unsustainable policies can restore credibility is at the least open to question.

Why is a high interest rate policy unsustainable in Brazil? An obvious answer is that no government will find it easy to survive a depression. But there is a more direct reason: the fiscal position. It is almost universally agreed that the government's pre- devaluation policies lacked credibility for two reasons: the overvaluation of the Real and consequent external imbalance (with current account deficits running at around 4 per cent of GDP.) and the fiscal deficit.

Now just the fiscal deficit remains. But at around 50

... and down m the UK '^Inflation rate* v* Merest rates’*

. 12

k/Vis

Seocc DJLKMJU.W/

’ ttttnn b mol ft doge n CH to Baal and RH to UK.

93 94

nee rate ae C& rc» br Brsfl «f Baa rxs hr W

per cent of GDP. Brazil's public indebtedness is not particularly high. Moreover, the country has a primary fiscal surplus (balance, without interest payments), targeted at 3.1 per cent of GDP for this year. Thus Brazil's fiscal deficit of 8 per cent of GDP last year is entirely explained by interest payments. Its difficulty, however, is that the cost of 70 per cent of its domestic debt is determined by the floating interest rate. According to J.P. Morgan, at an interest rate of 40 per cent and an exchange rate of R$2 to the daDar, the costs of debt service become a bonifying 17 per cent of GDP.

So high interest rates are themselves the chief cause of the loss of confidence in domestic monetary stability that they are expected to cure. Worse, if the impact of high interest rates on the economy is bad enough, even the primary budget surplus is likely to disappear, as revenue contracts and spending on goods and services rises.

This then is a true vicious circle. Brazil is trying to restore confidence with policies that seem bound first to undermine it.

Are there less

economically damaging and more effective alternatives? The answer depends on what determines that elusive asset, confidence. If it is true that - for all but the biggest advanced economies - apparently unnecessary’ suffering is the only route to the market’s heart, then there can indeed be no orthodox alternative. Confronted by a market panic and lacking access to sufficient foreign currency resources to halt the downward currency spiral, the country’ has to embrace the pain. But is this really the best the world can recommend? And, if it is. bow long will it be able to sustain the orthodoxy it proclaims?

'IMF- Supported Programs in Indonesia. Korea and Thailand: a Preliminary Assessment, January J999: "Brazil Memorandum of Economic Policies. March f 1999. Both available via http:' •inne. inzf.org

Martin. Wolfa_ft.com

PERSONAL VIEW JAMES A. HARMON

Rule and prosper

Crisis-hit developing countries need to adopt an^esp^the rule of law if they want to attract private capital from abroad

If there is one thing that we have learned from the financial crisis in the developing world it is that a global economy requires roles of law that are fair and predictable in every country.

Countless corporate bor- rowers from Manila to Moscow have been battered by the global crisis, leaving many insolvent and their foreign credi tors shell- shocked, not knowing whether they can recover assets in countries where the rule of law is absent. While the crisis has occasioned many nails for a “new finan- cial architecture" and for economic policy changes in emerging markets, the lack of private-sector confidence among foreign investors has been neglected.

Yet this issue is vitaL Pri- vate credit flows to the developing world have declined precipitously, from S200bn in 1966 to less than SZObn projected this year. There can be no real recov- ery until the fall is reversed. How can it be?

From our experience at the Export-Import Bank of the US. whose mission is to sustain jobs by supporting exports to these challenging markets, it is easy to under- stand why lenders are unlikely to make loans to companies that, if they default on their debts, will be protected by vague laws or cosy relationships with local courts.

If lenders and investors are so wary - and no one is rushing into crisis-affected countries these days - where will the capital come from to re-start growth? And if growth does not resume, wha: will happen to hun- dreds of millions of people whose living standards have plummeted in the las: year? We are net talking only abc-u: lost fortunes, but iost jobs and lost nope - includ- ing jobs in developed coun- tries.

Unlike the industrialised nations, where well- developec bankruptcy laws provide fair protection for creditors and borrowers

developin

conducive

ninp and predictable rule of law to restructure finan- cially threatened companies. All too often, creditors have no idea how they wiD fare, because they do not know the rules often cannot know how they will be implemented. We have attended credit meetings where no balance sheets or financial statements can be produced. ^

In Indonesia, courts refuse

While the United Nations, the International Monetary Fund and others are working to help enact and enforce legal concepts so familiar in industrialised nations, this wi 11 take time - time that many developing countries do not have. In the mean- time, the IMF, export credit agencies, banks and other sources of private financing must develop incentives for these countries' govern-

to recognise the concept of ments to recognise their acceleration or that swap obligation to provide a trans-

obligations represent debt. The Philippines' Securities and Exchange Commission's jurisdiction over insolvency undermines protections afforded by Philippine bank- ruptcy law and principles of due process. In Thailand, some legislators who happen to be major shareholders of insolvent companies oppose enactment of laws to effec- tively enforce liens. In Rus- sia. legal claims are often simply not recognised by courts. After the crisis hit. new bankruptcy laws were adopted in Thailand and Indonesia, but hopes for improvement were short Jived.

In many emerging mar- kets, international creditors are also treated to the spec- tacle of preferential and fraudulent transfers of assets from insolvent compa- nies. Creditors lack effective legal recourse, and are unable to get debtors to co-operate in consensual or court-supervised restructur- ings based on full financial disclosure. This state of affairs, often resulting from cronyism benefiting wealthy, politically connected local businessmen, was easily overlooked during the go-go years of 8 to 10 per cent annual growth. But, when the chips were down - as they have bees since east Asian. Russian, and now Brazilian currency devalua- tions - this cronyism casts a long shadow of uncertainty over foreign lenders.

In short: Capitalism without the rule of law is capricious, dangerous

parent, equitable and pre- dictable legal infrastructure for creditors - and they need to make it work.

One approach would be for developing coun- tries to establish impartial financial restruct- uring boards, which would allow creditors to voice com- plaints publicly and seek redress. The IMF could make rescue packages contingent on the creation of such an office. International credi- tors, including export credit agencies backed by the power of their governments, can make their assistance dependent on governments exercising responsibility to insure fair solutions. The private sector also could make access to capital condi- tional on such reforms. This would help rebuild confi- dence in doing business in many emerging markets.

Internationally accepted standards and legal mecha- nisms for restructurings are essential for lenders, com- mercial and public, again to provide the massive flows of capita] that helped drive growth in many emerging markets in the early 1990s. Without the rule of law. it is unlikely that strong, sus- tained growth will resume. Without that growth, too many people in developing countries will be unable to resume their own progress from privation to prosperity.

The author is chairman and president, Export-Import Bank of the US

\a^

* *

Ml * ? "

LETTERS TO THE EDITOR

. *V Z.' -v

vynnt good results? ■ vi-

*:'*T «

4,/.-- . - v.

>,rr

r 'T f -r . it aiw-.

i •-'**.* .

-v.; -Vr,- •

: ■ - V mmm ■ :

. \-\

• . T ’. - *9- ■

j - .It.-,. ..■*>*>+. ! t

:?•">? -tV . V

. .. - ; y • --- • •

V: ’r '

pears om€©M !

Illogical to say non-African world should not intervene in Africa

From Mr John MtritL

Sir. Your leader “Africa's poison" (March 3) is, respect- fully. wrong to suggest that the non-African world can- not and should not intervene in a complex African prob- lem.

First. Africa's complex problems are in part due to European politics in tbe 19th century. In this regard, it

would be incongruous to advocate that European countries have no responsi- bility in Africa. Second, it is somewhat perplexing that, while African problems require uniquely African solutions. Middle Eastern problems do not require uniquely Middle Eastern solutions. If logic be logic, and every region must solve

its own problems, then per- haps the US should with- draw from its important role in eastern Europe. Because, after all. eastern Europeans need an eastern European solution to their problems.

John Mbiti,

414 W 44 Street IE,

New York,

NY 10036, US

German company accounts favour caution

i From Mr Martin E. Simons.

Sir, Ralph Atkins and Uta I Hamischfeger are to be con- gratulated on their article about Oskar Lafoutaine. Ger- many's finance minister, and his tax plans, and the table showing international corpo- ration tax rates ("Lafontaine fights a rearguard action to defend tax ambitions". March 3). Germany heads the table with rates of between 44 and 57 per cent with the lower range appli- cable to profit distributors. The UK rate of 31 per cent is one of the lowest.

Those of us who have been examining German pub-

lished accounts have long known that a principal aim is to produce a cautious bal- ance sheet. That is facili- tated by tax-allowed heavy depreciation charges, auto- matic stock and foreign trade debtor write-downs (with tbe latter representing a form of export subsidy). As a consequence, what would seem to be harsh rates of corporation tax are applied to declared lower profits than is customary in the UK.

Over-prudent accounting tends to create secret reserves year by year, thereby checking the growth of equity reserves, which in

turn jacks up current return on published equity.

Apparent better equity returns linked with tucking away profits can lead to over-investment, which is also encouraged because too many financial analysts ignore some huge in-house pension reserves that are. in effect, loans to the business and should be included with debt when calculating lever- age.

Martin E. Simons,

24 Granard Avenue,

Putney,

London SW15 6BJ.

Japanese money supply and deflation

From Mr Divyang Shah.

Sir. You are certainly right to point out the three ele- ments in tbe Japanese equa- tion: lax monetary and fiscal policy coupled with financial sector reform (“Money for nothing", March 4». How- ever. it is questionable whether an expansion in money supply (via monetisa- tion) will be sufficient to pre- vent the deflation spiral that has its roots In structural deficiencies.

Monetisation will help increase the lag time of the economy adjusting to excess capacity and excess employ- ment levels. From a theoreti- cal standpoint, any inflation target requires a stable money multiplier, velocity of money and nominal gross domestic product. Given that

the credit creation system has broken down, and uncer- tainty surrounding private demand, it is even more dif- ficult to aim for an inflation target, let alone a money supply target.

The creation of liquidity without dealing with the financial sector troubles is likely to result in much of this liquidity moving out of Japan and accelerating the pace at which the yen depre- ciates. While this would help Japan in tbe medium-term, its impact will be limited as long as the financial sector remains dogged by bad debts on its balance sheets. A more palatable alternative is the purchase of bonds by the Bank of Japan in order to use the proceeds to remove the bad debts from the bal-

ance sheets Of the financial sector.

However, dealing with the liquidity issue is easier than undertaking a wholesale restructuring of the banking sector in order to make it more profitable - to which one of the necessary condi- tions is to reduce the capital of the hanking sector.

At present Japan seems unable to take such a bold step and thus the risk is of another stop-gap measure that leaves restructuring a distant prospect for the financial sector.

Divyang Shah, global strategist,

IDEA.

Lincoln House,

296 High Holboru,

London WClV 7JH, UK

Motor industry is changing

From Ms Niki Leahy.

Sir. John Kay’s comments on the globalisation and scale economies of the motor industry (“Where size tent everything". March 3) misses several points relating to the changing cost and price structure of vehicle manu- facture.

Consolidation within the industry is now leading to a “levelling out" of market share between a larger num- ber of dominant producers - as can be seen in both Euro- pean Union and North Amer- ican markets. In future, global distribution networks, rather than global volume capacity, will determine competitive advantage and commercial survival.

Profitability is no longer a result of economies of scale in global production and sourcing but dependant on maximising output to the point optimum with product differentiation, for supplying global market segments, in which no producer occupies a dominant position.

Production break-even can be achieved at lower output volume, provided it is suffi- cient to recover the addi- tional. specific costs that relate to the particular sup- ply decision. Prices are cal- culated to maximise total contribution to profit accord- ing to percentage market share.

Fragmented global mar- kets will not end the domi- nation of mega-volume pro- ducers, but they will end the higb-volume capacity and economies of scale advan- tages that have previously been used to offset the industry’s high fixed opera- tional costs.

In future, controlling sales and administration costs, and reducing costs occurring over the customer lifecycle, will be of far greater significance.

Nfld Leahy.

Dim View,

Howbury Street,

Bedford. UK

Number One Southwark Bridge, London SE1 9HL

Wa tre keen encouago teri-srs from readers wtAJwiAa, Lot era may be feued to +44 171 4173 5938 feet fax io ejrdk lerters.&iKjpWLcotn Prikswd ier«r; are atso ai3*sb<9 on the FT web ste. mp:'/www.FT.oan Translation may be aua&xxe ^ laKrs *rmen r Ute ran RTsmarranal languages. Fan 0171 873 5838. Letters ahnJd be typed and not haxi when.

FINANCIAL TIMES

EDNESDAV MARCH 10 1999

a&-:~

■

falUjUKV^

hhE«-.r*U_

^ Sew-.:

laefescas-.?

NT S.W' f V -•*•%;.

?»%«?%!«>; .

“•■•••■ f-j*

“-¥£%*

swir^-T

rxs&T&1-

V. . *St*vV; :

*£ *••

k/_ jjr^,

tew-.-. V

L . _ '»

•»Wi

Zk*£

COMMENT & ANALYSIS

essute

ebatg

ilv..

Hill

fba „**; i*._ '

i£y -> ■

V- V .

sl'-iris

SWBC'

' :-»»7

£&«£- jB--- ?•--

sti'-r-

* • <-= l- » /C M • A

~ = :’. uS'£<

<7-£* ;■'; V

‘“V-

Wi _

#fr.

SfV-

;: -s? iii*. fir.

Sr •

•*F

^ -

..-r ■«• .. - r -

FINANCIAL times

»^S3 ISfBf St^a- «- •fe,

Wednesday March 10 1999

Nato balancing act in the East

History wfll be made this Fridav when the Atlantic alliance takes in three new members - Poland, the Czech Republic and Hungary - even though they are far from the Atlantic. The signing cere- mony at the Truman Library in Independence. Missouri, lifts what one Polish minister called the geopolitical curse on his country of being on the wrong side of the east-west divide in 1945. for which Hungary and Czechoslovakia also had to suffer Soviet military oppression in 1956 and 1968 when they sought to renounce or dilute their member- ' ship of the Warsaw Pact.

So this trio of central European countries has cause for celebra- tion at “coming home”, and Nato's existing 16 members have reason for satisfaction at the expansion of their alliance, the longest-lasting military pact in modem times. Yet there is a deceptive ease about Nato enlargement that carries risks.

The process of negotiating entry into Nato is nothing like as complicated or costly as the east- ward enlargement which the European Union is also pursuing and which will take much longer. From start to finish, the incorpo- ration of the Poles, the Czechs and Hungarians into Nato has taken less than two years, at a cost to Nato of less than $2bn. Nato has committed itself to keeping its door open to still more members. But there are plenty of potential pitfalls down this road. The biggest of these would be to alienate Russia when it may soon pass into the hands of someone less sympathetic to the west than Boris Yeltsin. Tak- ing Nato right to the borders of Russia will not increase western security if it also fuels Russian resentment. Moscow may one day again be strong enough to threaten the west.

Baltic membership

Nine more countries are knock- ing at Nato's door. None of them will get an invitation to join from next month's Nato summit in Washington. But this is partly because Nato allies disagree on

the direction of any expansion. France and Italy have put prior- ity on the south - Romania and Slovenia. Other Nato states are cooler on enlargement, but their arms industry is keen on new markets. This is particularly true of the US, which has also made commitments to the Baltic states. New Nato members do not want to be left on the alliance's edge; so Poland, too. backs Baltic mem- bership. Such a prospect brings an allergic reaction from Russia, which says it is flatly opposed to any former part of the Soviet Union joining Nato.

Closer alignment

It is time to take a harder look at the criteria for Nato member- ship. First, countries should not be encouraged to join Nato long before the EU simply because it is organisationally easier for them to do so. Closer alignment of Nato and EU membership would also make sense if the Eli is to take on a defence role, and avoid putting other countries into the category of Turkey, in Nato but outside the EU.

Second, Nato has to weigh its own strategic interest in enlarge- ment. It is increasingly asking its members for the political will and military capacity to take part in crisis management and peace- keeping outside the Nato area. Potential memberj should be judged by whether they would contribute to these new tasks.

Finally, it would be wise to blur the distinction a bit more between Nato's "ins” and “outs". Obviously, some distinction must remain, if the collective rights and responsibilities of full mem- bership is to mean anything. But Nato has run a very successful Partnership for Peace with many outside countries for the past few years, and the Washington sum- mit is expected to offer applicant countries a new Membership Action Programme to help them get even closer to the alliance.

This might not lessen coun- tries' appetite to become full members of Nato. but it should I minimise the creation of new ■ dividing lines across Europe. j

The smiling face of Iran

President Khatami has launched a charm offensive in Europe to attract foreign investment into his oil-rich but capital-starved country, say David Gardner and Robin Allen

D’Alema’s

dilemmas

Tbe determination of Romano Prodi, Italy's former prime minis- ter. to ensure his country's entry into European economic and monetary union was impressive. Yet doubts remained about how Italy, with its heavy burden of government debt, would cope within a single currency. And already, the country is facing problems in its attempts to keep up with the euro-zone pace.

Output growth in Italy last year was the slowest of all the euro-zone economies, at L4 per cent; and most forecasters are predicting that growth this year will not be much higher. There are a number of reasons for this. The Asian crisis hit Italy much harder than many other Euro- pean. countries. The withdrawal of the government’s incentives for car purchase is another fac- tor. And the contractionary effects of the pre-Emu budget squeeze are still being felt.

Yet Italy's politicians must surely have hoped that the mas- sive monetary policy boost pro- vided by a fall in short-term interest rates from 9 per cent in 1996 to 3 per cent now would kickstart growth again - as it hag rinnp, for example, in Spain. Why is this not happening?

One explanation is that Italy has traditionally been a nation of savers. A large fail in interest rates means that these savers will get a lower income from their investments. The contrac- tionary effect this has could eas- ily outweigh the impact from cheaper borrowing rates.

The counter-argument is that as interest rates have come down, so inflation has fallen, meaning that real returns have not fallen by much. However, the psychological effect of lower nominal rates could still be strong.

Italian business

A more important point is that lower rates should still have a powerful effect on Italian busi- ness, which has a relatively high level of indebtedness, much or it short-term. In addition, Italy s household savings ratio has been

falling steadily for some time and is now not greatly out of line with the rest of continental Europe. Perhaps the effects of monetary policy are weaker and take longer to be felt in Italy than, say, in the UK; but there is no reason to think that policy would be ineffective.

Structural problems

The alternative explanation for tbe puzzle of why falling interest rates have not boasted growth is that Italy’s structural problems are constraining the economy’s, ability to expand. True, change is afoot in Italy’s opaque corporate sector, with Olivetti’s bid for Telecom Italia likely to prove a. watershed.

But in his five months in power. Massimo D'Alema, the prime minister, has failed even to make a start on tackling other obstacles to economic progress. Italy's labour market remains one of the most rigid in Europe. Greater investment in infrastruc- ture is needed, particularly in the south. And Italy’s pension sys- tem absorbs a huge 15 per cent of gross domestic product without reform, it will be extremely diffi- cult to bring down the overall level of taxation. _

This lack of further structural .fiscal reform, together with slug- gish output growth, means that Italy's progress in meeting its budget targets could be slow - as the European Commission warned only last month. Although the targets for the gen- eral government deficit are being met, this is chiefly because of the effect of lower interest rates on the government finances. The primary surplus (which excludes debt payments) actually slipped back significantly in 1998 from the previous year.

The margin for manoeuvre afforded by low interest rates means that there is an opportu- nity for the government to make real progress on structural reform. Unfortunately, all the indications are that Mr D'Ale- ma’s government will be too weak to take action. It is tune for him to prove his critics wrong.

Best of the UK Budget, page 8

Mohammad Khatami.

the smiling race of Iran, arrived in Italy yesterday, fresh from winning what was in effect a referendum on his attempts to reform the Islamist revolution in recent elections to town and city councils.

This is the first state visit' to a western country by a leader of the Islamic Republic which in 1979 replaced a pro- western mon- archy with a fearsome theocracy. It is Mr Khatami's first shot in a charm offensive designed to enhance his and his country’s international stature - and above all to break free from continuing US attempts to isolate Iran's oil- rich but capital-starved economy.

Italy is a modest enough begin- ning for such a campaign. It was chosen because Lamberto Dini. foreign minister , and Romano Prodi. then prime minister, were the first western leaders to visit Tehran last year and demon- strate some understanding of Iran's evolution. But Iranian and western officials say the engag- ing reformer's ambition should not be underestimated.

“The Iranians see Italy as a bridge to a wider dialogue with the European Union which they expect to consolidate when Mr Khatami follows up his talks in Rome with official visits next month to France and possibly Germany." says one senior Euro- pean diplomat in Tehran.

There are powerful domestic reasons why Mr Khatami should be seeking dialogue with Europe. Respect abroad is translatable into increased authority at home. Despite his popularity, Mr Kha- tami is constrained by hardliners who use religious dogma to defend the power and wealth they have built up since the revo- lution. This is doubly so in a sys- tem like Iran's, of competing but fluid power centres, where power flows to where power is perceived to lie. As the leading pro-reform daily Salam observed on Sunday: “The success of tbe reformers in rhe local polls will pave the way for Khatami to carry forward his foreign policy: it will help him to act with greater authority.”

There are three connected objectives of Mr Khatami's cam- paign. They are: to win western endorsement of his efforts to cre- ate accountable government under the rule of law; to foster international acceptance of Iran as a regional power with legiti- mate security interests in the Middle East and central Asia: and to begin enticing the foreign investment Iran desperately needs to employ its fast-growing population, two-thirds of whom are under 25.

The reformist president, elected by a landslide nearly two years ago. enjoys unquestionable legitimacy among the country's young population. They support Mr Khatami with a fervour bor- dering on adulation.

The municipal contests of two weeks ago showed that his reform coalition is intact and on the march. Still incomplete results indicate it won around 70 per cent of an seats, sweeping the capital and Isfahan, which rivals Tehran in political ferment.

These were the first municipal polls since the revolution. In fact, they were the first local elections in over 2J500 years of Persian his- tory. More to the point, they mean that supporters of Mr Kha- tami now have every chance of thrashing the theocrats In next year's elections to the Moults or parliament - currently a bastion

of resistance to reform - and winning his re-election in 2001.

If by then he has managed to acquire what one senior Euro- pean official calls “real interna- tional standing”, it wfll be very difficult for his opponents to bring him down.

As Mr Dini put it this week: “A new course has been set by Presi- dent Khatami and he needs and deserves our encouragement He should feel it is not our Intention to isolate Iran or to beep him in a religious ghetto."

The difficulty faced by Iran's hardliners is not only the sheer scale of the two defeats Mr Kha- tami has inflicted on them. It is that the evolutionary reform offered by the president legitim- ises the continuity of the Islamic Republic. But while this confers enormous advantage on the reformers, Mr Khatami also faces difficulties of his own.

To begin with, Islamist theo- crats still hold many of the coun- try’s power levers. It is not Mr Khatami but Iran's supreme leader - Ayatollah Ali Khamenei, who succeeded tbe revolution's late leader. Ayatollah Khomenei - who controls foreign and defence policy, the intelligence services and judiciary, and about 80 per cent of Iran's economy through revolutionary “founda- tions” or bony ads.

The shadowy masters of these power centres have every inter- est in opposing rapprochement

with the west and the open trade and investment which would fol- low. because that would end their control of a rickety but lucra- tively rigged economy.

Evidence that the interests of the theocrats are at least as much material as spiritual Is that they resorted late last year to the assassination of half a dozen reformist intellectuals tbe moment the government started

‘Iran is not willing to open its books. The US would be among its inquisitors, and Iran will not countenance that1

trying to audit the bonyads, states-within-the-state which monopolise the provision of some 5,000 goods and services. Put another way. for every American like Professor Samuel Hunting- ton of Harvard University, who posits a “clash of civilisations" between the Christian west and militant Islam, there is a well-heeled mullah egging him on.

hi its stead, Mr Khatami has proposed a “dialogue of civilisa- tions", which he will begin with

the Vatican tomorrow at an unprecedented meeting with Pope John Paul n. At home, though theocrats fear Mr Khata- mi’s dialogue will end clerical rule and privilege.

Tbe west, for its part, is anx- ious about Tehran's apparent attempts to develop nuclear weapons capability with Russian assistance - as Massimo D'A- lema. Italy’s prime minister, has said be will make clear this week. It is that fear which is fuel- ling the drive for bigger and bet- ter sanctions against Iran in the US Congress, few of whose mem- bers see any electoral profit in a dialogue with Tehran of any kind.

But with Israel's unacknow- ledged nuclear arsenal to its west and India's and Pakistan’s new nuclear capability to its east, Iran feels li has the right to defend itself. It could push ahead with its weapons programmes unless it feels the west is prepared for genuine co-operation on security in Iran's unstable surroundings.

The nuclear issue and US sanc- tions on Iran greatly complicate Mr Khatami government’s efforts to reform the economy.

And it Is not clear that Iran can delay structural reforms for much longer. The currency is sliding, the budget deficit is soar- ing. and unemployment and Inflation are both acute. Iran needs to attract around tlObn a year In foreign investment to

OBSERVER

Bonino breaks for the border

The large newspaper advertisements earlier this week left no one in any doubt that Emma Bonino, the European Commissioner responsible for fisheries, consumer policy and humanitarian aid, had launched her campaign to become president of Italy.

But Observer remains puzzled The Commission has just unveiled new codes of conduct for its members which frown upon activities that might represent a conflict of interest A Brussels official is swift to dear things up, insisting Bonino isn't really a candidate.

It’s all quite simple: because the president of Italy is chosen behind the closed doors of Rome's party headquarters, the “non-candidates" do not go out and campaign, “ff there is no election campaign, then there is no conflict between this non-candidature and the code of conduct” a Commission official explains.

As a member of the marginal Radical Party Mrs Bonino stands little chance of being reappointed to her seat in Brussels. So it’s only fair she should be allowed to look for a new job.

Barking mad

Those spending watchdogs at the United Nations seem to have

sniffed out a scandal. Namely - the vexed question of whether the UN paid more for a security dog than an under-secretaiy- general.

A Costa Rican envoy has apparently raised the issue before the main UN budget committee. It's said the dog in question is costing SI 50 .DOT a year, while the impoverished under- seer etary-g en era! takes home a mere $140,000.

But all those officials thinking of demanding a pay rise should take heart Observer's hounds have been on the trail, and have discovered the canine fee may include a handier. Even so, paying one man and his dog that much really does take the biscuit

Board games

There’s safety In numbers at Credit Suisse. Switzerland’s second biggest bank has just set up not one but two new advisory boards to akl its own star-studded group board.

Helmut Kohl, the forma1 . German Chancellor, Telecom Italia’s Franco Bemabe and Bayer’s Manfred Schneider are some of the heavyweight figures invited on to Credit Suisse's 12-strong international advisory board. The new Swiss advisory board is bigger still, with 18 members who wfll no doubt be wined and dined in return for raising "issues of concern”.

It’s an odd move since

International advisory boards have fallen out of favour as banks have become more cost-conscious. Swiss Bank Corporation scrapped its council of Internationa] advisers a couple of years ago because it was worried about conflicts of interest with its investment bank.

SAfr Group, parent of Switzerland's national airline, has just set up an advisory board, but at the same time halved the size of its own 19-strong board. Credit Suisse, on the other hand, wfll continue to have 18 directors on its main board.

Thafs far too many for effective decision-making. But then cynics might argue that its Rainer Gut, Credit Suisse's well-connected chakman, and noth© board, who has always called the shots.

Kopper bottom

Former Deutsche Bank chairman Hiimar Kopper once made a bit of a gaffe by describing his bank’s property-related losses as “peanuts’. He's capitalised on the remark ever since. For instance, he recently featured in a Frankfurter Allgemeine Zeitung advert reading the paper while perched atop a railway wagon full of peanuts in Georgia. USA.

A reference to him on the internet even refers to his peanut crack as well as giving details of his blood pressure.

But the latter may be set to rise. Kopper, wearing another of

his many corporate hats as

chairman of the supervisory board of DaimlerChrysler, is being furiously accused by other supervisory board members of keeping secret details of new contracts entitling main board members to big pay increases and generous stock options, in that context, talk of peanuts just Isn't on.

Signing off

At last! The finger of fate has given foreigners living In Japan a helping hand. Foreigners setting up home In Japan have long been required to submit their fingerprints for registration purposes. But now, after 47 years, the government has agreed to revise the rule - and substitute signatures for fingerprints.

The rule has been a bone of contention in Japan as foreigners see it as an infringement of human rights. So much so that in 1992, legislation was revised to stop fingerprinting for those with permanent residency status.

The most recent decision wfll abolish the requirement for all foreigners, regardless of residency staffs, and is expected to affect some 600,000 residents.

But there are stffl some ruffled feathers as many foreigners are obliged to carry alien registration cards at all times. Evidently, foreigners' human rights, Aka Rome, weren’t built In a day.

return to stable annual growth of about 5 per cent. It also needs to reschedule its foreign debt, most of which is short-term.

Of Iran's $23bn foreign debt, $ll.9bn is short-term. This means that Iran must often resort to refinancing obligations under unfavourable terms, particularly now that oil revenues, which comprise SO per cent of hard- currency earnings, are low.

"The scale of this foreign debt is not the problem," according to one senior European diplomat. "Compared with Turkey's JlOObn or more and the scale of Iran's

resources, its debt could easily be entirely rescheduled and put on a viable basis, if only Iran would take its problem to tbe Paris Club of OECD governments. But Iran is not willing to open Its books. The US would be among its inquisitors, and Iran will not countenance such a prospect"

Moreover. Mr Khatami's cam- paign to present the smiling face of Iran contrasts strongly, busi- nessmen and bankers in Tehran say. with the fearsome bureau- cracy that awaits foreign Inves- tors. Last month, for instance, the Majlis passed a budget law which highlights the country’s schizophrenia about foreign, investment. On the one hand the law, effective from the beginning of the 1999-2000 fiscal year starting on March 21, held out for the first time the prospect of 49 per cent foreign equity partner- ship in Iran's refineries. But the same budget law proposes to slap an income tax of 5&80 per cent on the salaries of all foreign resi- dents, plus a corporate tax of 30 per cent, payable by foreign com- panies, on the collective salary of all their foreign employees.

The dysfunctionality of the law betrays Iran's preoccupation with security. Its ostensible purpose is to force foreign companies into three “free trade zones” on islands in the Gull. “That way," one senior European diplomat says. “Iran’s bureaucracy and security apparatus will have for- eign businessmen where they can be more easily kept under sur- veillance."

Even if foreign businessmen find a way round the “free zone" hurdle, they are met by a bureau- cratic jungle of officials who are appointed, according to Ali Rash- id!. an economist, for “reasons of nepotism and political favouri- tism rather than on merit”.

Bankers complain that simply to get the central bank to con- firm buyer letters of credit, a pri- vate sector client has to go through no fewer than 23 proce- dures involving three different government ministries and five separate departments of the cen- tral bank.

These include a honeycomb of offices ranging from the secretar- iat of the foreign exchange mar- ket supervision committee, to the foreign exchange policies and regulations department, the international finance depart- ment, the general credit agree- ments department, the foreign exchange control department, and the foreign debt department

Even under Mr Khatami, there- fore, Iran is not for the faint- hearted. Widely known across his country as “the laughing son of the prophet [Mohammed]", in the 18 months since he took office he has set Iran on a course of politi- cal devolution and reform.

But there is little to smile about in the obstacles he still feces. To surmount them, be is now seeking support in the west.

100 years ago

A Come-down For The □ Dorado Of North America After all the accounts of the fabulous wealth of the Ktondyke, it is strange to read that money is remarkably tight in Dawson City. Yet this is the statement made by the special correspondent of the Toronto Globe, who adds that 10 per cent, per month is quite a common rate of interest, and that 15 per cent is being freely offered, just because five delay in the mails has prevented remittances from reaching the town. We would have imagined that a few of the nuggets about which so much has been written might have saved the situation. It Is a sad come-down for the capital of the new El Dorado to have to depend on outside sources for its petty cash.

50 years ago

U.S. Gold Imports Washington, March 9. South Africa furnished foe whole of America's gold imports of 90,283 Troy ounces in the week ended February 16, Department of Commerce statistics disclose. Exports of foe metal were 29,500 Troy ounces, alt to Poland and Danzig. I

., - .... v-, ;

Die

<te. Since as been

>f which ? profi- ler shift

s going fovotny. ioes not >r a pro- present next 10

nitially •Out 400 faction mg a nit. By- tribute n.

ts are armed ibstan-

irae of

t was 15 per prod- ind is ' next

lis is

> and re is cure- : the d to •mes- light next

PRINTERS FAX MACHINES

FINANCIAL TIMES

SOTHEBY'S

International Real tv

+44 (0) 171 598 1600

' 1

WEDNESDAY MARCH 10 1999

THE LEX COLUMN

Coughing up

RJR Nabisco has certainly extracted a puffed-up price for its international tobacco operations. The $8bn Japan Tobacco is paying equates to 15 times earnings before interest, tax and depreda- tion - nearly twice what BAT paid for Rothmans two months ago and far higher than the valuation accorded quoted rivals like Imperial or Gall ah er. Such largesse can only be explained by the Japanese group's desperation to expand overseas as it loses market share at home.

This coup should see ofT corporate raider Carl Icahn, who has built a 7.7 per cent stake. It cuts RJR's net debt to S3bn and paves the way for a separation of the remaining US tobacco and Nabisco food businesses. RJR's 80.6 per cent stake in separately listed Nabisco Is worth nearly $30 a share. On a cautious 12-13 times earnings, the domestic tobacco unit adds another $13-514-

There is a caveat: the existing holding company, which will end up with just the Nabisco stake following the demerger, will retain its exposure to tobacco litiga- tion claims. Nevertheless, with RJR's shares at just over $30, there is substan- tial value to release.

It might also boost rivals, by creating a pure, quoted US tobacco company as a comparator. At present, the US tobacco operations of Philip Morris and BAT are valued at close to zero by the market.

Sony

Stare price relative & tea NBAeS 22S Average

300

275

250

225

200

175

150

100 W1*6

75'*+ I-

1935

Savor OC&manKV

Telecom Italia/Olivetti

warrants and savings shareholders would be able to convert into voting shares. The twist is that - because each shareholder would probably be given only three war- rants but 10 would be needed for conver- sion - the savings shareholders would have to buy the remaining seven from ordinary investors.

This mechanism could kill two birds with one stone. First, ordinary sharehold- ers would receive cash - perhaps as much as €1 a share. Second, the savers would be enfranchised. That would make Telecom an even bigger mouthful for Olivetti to swallow, as it is not currently bidding for the savers. The only caveat is that this scheme may be too clever by half.

How do you enfranchise non-voting shareholders without making voting shareholders unhappy? Telecom Italia's financiers have devised a clever answer. The simple approach of giving the savings shareholders ordinary shares on a one-to-one basis is unattractive. The sav- ers would be more than happy with such a plan - after all. their shares currently trade at €5.80 compared with €9.70 for the ordinary shares. But ordinary sharehold- ers might feel they were cheated if their voting privileges were diluted without any quid pro quo. And there is no point in antagonising the voting shareholders, as they will determine whether Telecom keeps its independence in the face of Oli- vetti's onslaught

Hence a scheme being considered by Telecom for giving all shareholders con- version warrants. Collect enough of these

Sony

Sony’s restructuring announcement verged at times on the opaque. A “unified dispersed" management model does not exactly trip off the tongue. But it would be wrong to underestimate the courage of what is being proposed.

The company's overhaul is twofold. First are its efforts to improve profitabil- ity in its electronics operation, which has been hit hard by the strength of the yen and savage price erosion, especially in the Japanese market. Certainly the compa- ny’s third quarter results raised fears over its operating profitability Cor the fourth quarter, despite the great strength of the Sony brand. The impact of cost-cutting on profitability is tricky to quantify. Reduc- ing headcount by about 10 per cent by the end of March 2003 sounds chunky, but, as

UK Budget

This was a pre-election Budget. And probably the first of three at that, given that the election is unlikely to be held until 2001 As ever Gordon Brown, the chancellor, has been clever politically. The tax cuts announced yesterday kick in modestly, the net tax give-away is only £1.1 bn in 1999-2000. But by 2001-2002, the probable election year, the give-away has increased to £3.6bn.

Mr Brown presumably bopes voters will have forgotten the abolition of various tax privileges when they enter the polling booth, but will still be grateful for the lower income tax rates.

Despite the tax cuts, the government's net borrowing still manages to fall a touch in each of the next three years. How come? Reduced interest payments on government debt, a lower contingency reserve and accounting adjustments are the answer. Together they cut govern- ment spending by an average of £5bn a year, more than enough to pay for the lower rates of income tax.

These are the sort of conjuring tricks UK chancellors love. Investors, though, will not be fooled by Mr Brown's arithme- tic. The fiscal boost may be fairly small beer. But the bond market has already sold off in expectation that the Bank of England wifi now be less keen on cutting interest rates. A sober assessment is par- ticularly appropriate if one thinks Mr Brown win cast more goodies in the vot- ers' direction in his next two Budgets.

CONTENTS

News

Features

Companies & Finance

European News ..... American News — International News . feta- Pacific Nows . World Trade News

UK News

Weather

23 ErStortals

_ 5 Letters

4 Hanagement/Tedmology -

... 6 Observer

... 4 Arts & fete Guide...- .......

8.9 Analysis

. 14 Crossword Puzzle

...... 12,13

........ 12.13

totemational Company News 16,17

International capital Markets _.. 20

FT.com

HNANCIAJL 1 IMES

Markets

DffGctoiy of online services

British adventurer David Hemptaman-Aclarns preparing to leave Eureka in the Arctic yesterday to attempt the first solo and unsupported expedition to the north geomagnetic pole. Picture: PA

Bond futures and options	— 20
Short term interest rates	— 21
	20
	..... 21
	.... 21
FT/SSP-A World hdlces	_... 29
	.... IB
WOrld stock mariats reports	— 32
Wttld stock market Bstings	29
London share service —	26.Z7
FTSE Actuaries UK share indices ..	— 28
	.._ 28
Dhrfdenos announced, UK _....	IB
Managed funds service	23-25
	22
F15E Gold Mines Index	28

FTjCOK Uw Rnandol Times web dbe mfen mm, amnMt aid analyse.

mtMmw.FT/ua

The Global AreWwE an sas^tn-usQ buttress Bsanr K over 15 nfcn ankles Irani B» FT and bum thousands d dta toadug newspapers sjd tufcwB ptfcatans.

/Mp^inw/rxanitabEMke Hnwnmnr MlmtillM! MannaHon, oltara ad o*« ordering.

FT Mnm Reports Sanies; wane odstig er avua v htatn reports and accarts of 1200 IK pcs

MpaWiwwJtMiBbtwarapBBgzajiw FT fliBwc dbtttay

tmpjTvnrw. (I axnVxvtAsmtyJim CBytoK ton to gal flare prices art nsrtei reports &y tterfon and fata*.

finjr.'irww.ll can/nnKVBp&/21 T&Jton Surveys: <MMa u! tofficomteg aStorial ancys. NpO/atM. It BXMiempasxtfZiGSJtto

FT WEATHER GUIDE

Europe today

Western regions wHl be milder but heavy rain wfll move Into western France and the north and west of the Iberian peninsula Germany and the Low Countries will have sporadic rain but central regions should see some sunshine, ft wifi also be sunny across south-east Europe and die Mediterranean, although a few showers are likely In Turkey. Snow In the north-east wflt turn to nafri as milder air moves In from the west Scandi- navia will stay cold with some heavy snow showers and rain only in south.

five-day forecast

Heavy rain will spread farther east across die Iberian peninsula and western Europe but central and eastern areas will be mostly dry with some sunshine. Most of the Mediterranean will be sunny and warm. Scandinavia and the far north-east will have more snow.

l ; .\Lf

Wind speed Is KPB

Situation at midday. Temperatures maximum tor day. Forecasts by "PAT W EATHERCENTRE

TODAY'S TWERAIURES				CJiaa*i	drd	5
	Mtocftrun M9k m	Barcelona	Sun Fas-	35 17	Cato Caracas Cantlt	Fair Fair 9KMW	72 27 a
			Batng			CasaHanca	Shower	30
						Chicago	Fair	1
			Belgrade	Sun	ie	Cologne	Rate	ID
Amsterdam Athens Atlanta a Alrae	Ran Sun Fas' Far	9 18 8 25	Bermuda Began BomtHy Brussels	R*i Fair Sun Rain	16 n 32 10	Cteiu* Dates Detn Outut Dublin	Sim Far Sun 5un Far	24 24 33 25 7
3Jvjm	Fair	e	Budapest	Far	15	Dubrovnfe	Sun	16

EtJmtxrgh Shower 6 Faro Shower 17

fi* 11 Feta- IB Fas- 7

Hettrto Snow 4 Hone Kong Cloudy 18 Honolulu Fair 24

lettnbU Sun ii

Jakarta Thunder 31 Jersey Rain 6

Johannesburg Fair 28 Karachi Sun 28

Kuwait Sun Z 7

L. Angeles Fair 18 Las Patem Fair 2] Lima CJoucy 28

Lisbon Shower 14 10

LuxDouq Ram a Lyon Cloudy 17

Madeira

Madrid

Majorca

Matte

Manchester

MaMa

Metmvne

Maw oo City

Miami

Mlar

Moscow

Munich

Nairobi

Nantes

Nassau

New York

Mas

Ncash

Rangoon	Sun	35
Reykiarb	Snow	1
fUa Dmu	Thunder e«L>	31 f 7
rWllPO S. ftieo	rmm Shower	It 14
Seoul	Fak	9
Singapore	Thuider	33
Stockholm	Snow	0
Strasbourg	Shower	14
Sydney	Sun	26
Tangier	Farr	SO
Tel Ayfv	For	19
Tokyo TrimiVn	Shower Cab1	15
1 UVWJ		-1
Vancouver	Rate	12
Ventoe	Fair	12
Vienna	Far	13
Wtaraaw	Rate	9
Washington	Rain	a

Sun	31
Shomr	12

TRTT

with NEC’s recent restructuring announcement, it is unclear how many of these jobs cuts would have come anyway through natural wastage. Reducing Sony’s manufacturing facilities from 70 to 55 may turn out to be the more significant mea- sure.

Second, and possibly more radical, is Sony's shift In management and culture. The company stressed the importance of profitability. More outside directors and greater transparency in its bead office operations should put pressure on head- quarters personnel to explain how they add value to the sprawling group. Compe- tition is hotting up between Japan's elec- tronics conglomerates keen to demon- strate their shareholder-friendly credentials.

Eisuke Sakaki tiara, Japan's high profile and controversial financial diplomat, is expected to leave his post as vice-minister of finance for International affairs later this year.

Any reshuffle at the ministry will be closely watched in international financial markets, in the two years that Mr Sakakibara. 57. has held the post, he has earned a controversial reputation for making comments that attempt to influence markets. He has become known as “Mr Yen" for his reputed influence over the foreign exchange markets.

Mr Sakakibara has also been more forthright in expressing his views to foreign bankers than most Japanese bureaucrats, partly because of his experience in the US as an academic and economist.

Although some foreign observers have welcomed his openness, it has sparked criticism in the ministry, and some bureaucrats sought to replace him last year. Officials say he is likely to be replaced by his low-profile deputy. Haruhiko Kuroda, 51

The finance ministry insists that it has taken no binding decisions about the reshuffle. However, its rules for internal job rotation mean that Mr Sakakibara will almost cer- tainly leave, unless Keizo Obuchi. Japan's prime minister, specifically intervenes.

In recent days Mr Sakakibara and the ministry have indicated rh2t they are preparing for a reshuffle. For example, the ministry has recently asked Takatoshi Ito. an eco- nomics professor, to become Mr Sak- akibara'5 assistant

“Mr Sakakibara is more articulate and closer to the hedge funds than many of bis predecessors." says Peter Morgan, economist at HSBC Securities.

The markets have seen Mr Sakaki- bara as a supporter of a “strong yen" policy, although he has modified this stance in recent weeks. As one US hedge fund manager says: "If he goes there is a chance that people could assume that there wjli be a weaker yen."

Mr Kuroda shares most of Mr Sak- akibara’s views on the currency and the markets. However, he Is a career bureaucrat who has maintained a low profile. A reshuffle could there- fore lead to a change in the minis- try’s market style.

Yoshito Sakakibara (no relation), economist at Goldman Sachs, said:

i.W-HlrrSiey.- '£'•

Eisuke Sakafctoara: forthright in expressing Ms views to foreign bankers

“Mr Sakakibara 's departure could reduce the influence that Japanese policymakers are likely to have over the foreign exchange markets."

However, some officials suspect that the planned recruitment of Mr Ito. 48, marks an attempt to main- tain the ministry's contacts with for- eign bankers and US officials.

Mr Ito is a close ally of Mr Sakaki- bara. and has also spent many years working in the US. including a stint at the International Monetary Fund. Mr Ito also has links with Lawrence Summers, US deputy Treasury secre- tary. since both men studied at grad- uate school in Harvard.

Mr Sakakibara has not yet indi- cated what post, if any, he may assume next

In the past, retirees from that posi- tion have tended to perform “amaku- dan", a descent from- heaven, into a prestige job in the financial sector.

Toyoo Gy oh ten, for example, a for- mer vice-minister, is senior adviser, at Hank of Tokyo-MitsublshL But in, the wake of scandals over exces- sively close links between financial institutions and the ministry, this practice has been outlawed.

Mr Sakakibara has recently told colleagues that , he is considering returning to academic life, possibly at a think-tank or by founding his own research Institute. He also has indicated that be would like to work in Australia, partly because he is. fond of scuba-diving.

Between now and 2015. expens predict that a 2-K Mb growth in seat miles and essential fleet replacement will trigger a SI .25 trillion market lor new aircraft. They'll take flight with the help of Dowty. a world leader in specialised hydraulics. - and actuation systems, tuthine engine components, aircraft structures, tubular systems and advanced propellers.

With 42 design and manufacturing facilities worldwide, Dowty is panning every major aircraft and engine programme and supplying 40 leading aircraft and engine manufacturers. Its equipment flies on over 200 types of aircraft and Dowty provides support iff 450 airimes and 150 military operators in 90 -rounmes. Which all means more advanced flight for 21st Century- Mm Dowty is one of T1 Group’s four specialised engineering businesses, the others being John Crane. Forshed* Polymer . Engineering and Bandy Each one is a technological and market leader in us field Together; their specialist skills enable T1 Group to get the cmica) answers right for its customers. Worldwide.

77 Croup

Globa I Specialised Engineering

i-i Fab i. .Tjfcuv T1 un-up pk. Lunboum Gain. AbrngJon. Own CTO 4 1 UH. En^ind iwutv ntyrnm

INSIDE

Bonds overshadow equities

A renewed burst of selling in bond markets overshadowed trading in equities, reversing ini- teigaffism Europe and sparidng early profit-taking in the US. A round of unexpectedly solid European economic data was the main focus for bond investors. Page 32

PDVSA’s oil dream evaporates

The mood at Petroieos de Venezuela, the state oil company, has been gloomy in recent weeks. The collapse in global oil prices has triggered a series of draconian budget cuts that have plunged the economy into deep recession, while increased intervention by the government of President Hugo Ch4vez (left) threatens to down- size the company further. Page 17

GM reveals expansion plan

General Motors announced ambitious plans to expand its European sales and market share while recognising demand and pricing in most countries would deteriorate this year. Page 16

Venezuelan coffee industry perks up

As Venezuela's oil industry, the principal source of foreign exchange, is hit by record low petrol prices and production cuts, the Caribbean nation is rediscovering what was once its lead- ing cash crop - coffee. Page 22

Yields on Japanese bonds rise

Yields on long-term Japanese government bonds rose sharply after a warning from the Bank of Japan governor that he expected long-term interest rates to rise again soon. Government officials’ suggestions of an immi- nent tightening of bond trading regulations also damped the bond market. Page 20

Whispers warn of China devaluation

China raised interest rates yesterday for local accounts held in US and Hong Kong dollars, sparking rumours that the renminbi might be devalued. Page 21

Nikkei jumps back above 15,000

Shares in Tokyo dosed above 15,000 for the first time in more than three months, buoyed by a surge in the high-tech sector and news of Sony’s restructuring. Page 32

s'.v- *■. '■■■ ^ ->■ i; •»

China urged to boost gold reserves

China should triple the ratio of gold in the for- eign exchange reserves, which have become over-invested in US dollars, according to a recommendation by a senior official at the national gold bureau. The allocation of China's $145bn foreign exchange reserves, the second largest in the world, has the power to sway currency markets. Page 22

COMPANIES IN THIS ISSUE

-Ahold	15 HSBC Holdings	4
Albright A Wilson	18 Julius Baer	16
Alcan	16 Korea Rrst	4
Alcatel Space	4 LVMH	17
Andersen Consulting	17 Lockheed Martin	2A
Audi	16 Lycos	16
BASF	16 Matra Marconi	4
BAT Industries	15,17 Mecfison	4
BBA	18 Microsoft	4
Bayer	16 Mitsubishi Electric	4
Berkshire Hathaway	16 NEC	4
Boeing	2 Olivetti	15,16
British Aerospace	2 Omron	16
CMGI	16 Opel	16
Caradon	18 Orange Comms	16
DaimChrys Aerospace	2 PDVSA	17
'OafmferChryster	4 Pasco	4
Dassault	2 Ralso	17
De Beers	17 Rhodla	18
.Diamond Multimedia	4 Roche	16
JXke Energy	16 Rothmans Int'l	15
Eagle Star	17 Saab	2.16
Endesa ChBe	16 Senior Engineering	18
Enersls	16 Seoulbank	4
Rat	16 Sony	17
Fortum	16 Telecom Rate	15,16
Frankfin Resources	16 Thomson CSF	4
GEC Marconi	2 UBS	16
Geico	16 USA Networks	16
General Motors	16 Unilever	17
Genera! Re	16 VauxhaH	16
Gucci	17 Volkswagen	IS
HJ Heinz « Zurich Fin. Sendees CROSSWORD, Pag® 22	17

MARKET STATISTICS

I FTSE Mtuartes stare maces I Foreign exchange &

arts prices "

Undm stereaaviw

21 2D

Money martets rtew inti bond Recent Issues. UK axxt-tetm w rates Stock raarteb at a glance

US Interest ran*

. ■

FINANCIAL TIMES

COMPANIES & MA

A
it	%
Mu

FINANCIAL IMS UfOTH) 1909

WEDNESDAY MARCH 10 1999

Week ID

seals, ever ;r LK.

4 British Midland

New York supermarket chain sold for $1.7bn

By Gordon Cramb In Zaandam

Ahold. the Dutch supermarkets group, yesterday built on its US presence with a Sl.TSbn agreement to buy Pathmark Stores, which oper- ates 132 outlets in and around New York.

The deal comes barely four months after Ahold completed the $2.8bn takeover of the Maryland-based Giant Food. Pathmark has a 12 per cent market share in metropolitan New York and a reach which stretches to New Jersey and Pennsylvania. It had sales of some $3.7bn last year.

This compares with the Sl&2bn in revenues achieved by Ahold’s existing US operations. Its presence in the US market was a main contrib- utor to 1998 net profits of the Dutch group, also announced yesterday. These rose 29 per cent to F11.21bn (SS20m), on revenues ahead 15 per cent to FlSKfon.

Ahold is to pay S250m for SMG-Q Holdings - the vehicle for a leveraged buy-out of Pathmark carried out in the mid-1980s - and its SMGH sub- sidiary. making a $38.25 per share tender offer for SGMH’s publicly traded preferred shares.

The rest of the purchase price reflects the assumption of §1.5bn in Pathmark debt. “Pathmark is a well-run com- pany but under-invested because of a highly leveraged balance sheet." said Cees vac der Hoeven, Ahold president.

The Dutch group will pay for the deal from Its existing credit facilities, redeeming Pathmark’s debt, it added: “Part of the debt restructuring may be funded with newly issued share capital."

Last September, Ahold issued FI 2.73bn in new equity as part of an offering, which also included convertible notes, to fund the purchase of Giant Food. It said at the time that its next takeover would not require a share issue.

Michael Meurs, chief finan- cial officer, said that the Path- mark deal would not be com- pleted until the fourth quarter, and a decision on raising capi- tal would be made only after that. '1 think that nn»an« we will have kept our promise." he said.

Ahold shares closed 2J3 per cent lower in Amsterdam at €32.55 ($35.42) although the group forecast an increase, excluding the effect of cur- rency fluctuations, of 15-20 per cent in earnings per share for this year.

It said the acquisition would have no impact on earnings per share this year or next and be “substantially enhancing" after that. For the first three quarters of 1996, Pathmark had operating earnings of nearly S97m. indicating an operating . margin of 3.5 per cent

Mr van der Hoeven said the group continued to seek expan- sion in southern Europe, but bigger markets to the north had not brought acquisition candidates at the right price.

Ricardo Zonta, part of the British American Racing team, at the Australian Grand Prix last week. British American Tobacco claimed its underlying performance was positive despite a tafl in profit. Picture; John Marsh

BAT still upbeat despite 16% decline in profits

By David Blackwell in London

British American Tobacco, which next week publishes details of its proposed £5J28bn ($S-5bn) takeover of Rothmans Internationa], yesterday insisted that its underlying performance was positive in spite of a 16 per cent fall in profits.

The shares - which shot up to 625p on news of the take- over plan in January - fell 27%p to 545'Ap. Analysts suggested that investors were worried by the group’s predic- tion that first-quarter operat- ing profits would be down on the comparable 1997 period, and by the prospect of further litigation in the US.

Pre-tax profits for the 12 months to December 31. exclu-

ding the financial services arm that was demerged last autumn, fell from £875m to £738m. But the figures were clouded by exceptional, including the payment of a total of £6l3m in US tobacco litigation settlements and the receipt of a £74m tax benefit in Brazil

At the operating level, prof- its were down 3 per cent to £1.55bn on sales of £17.4bn (£17£bn). But the group said that operating profits edged ahead by 1 per cent to £l.6bn at constant 1997 exchange rates after allowing for restructuring charges.

Martin Broughton, chair- man, said it would have been all too easy for management to take its eye off the ball last year given the extent of corpo-

rate activity. But the improve- ment in operating profits at constant exchange rates was in line with its promise when the takeover of Rothmans was announced - “a resilient per- formance” in the difficult trad- ing conditions that were con- tinuing around the world.

These were most evident in the Asia-Pacific region, where operating profits tumbled 41 per cent to £l82m.

Mr Broughton said the set- tlement of the state Medicaid claims against the industry in the US should have provided greater certainty for both shareholders and employees of the group. But further claims had shaken investor confi- dence.

Zurich adds a charge, Page 17

Telecom Italia considers new bid defence

By Hugo Dixon in London

Telecom Italia is considering enfranchising its non-voting savings shareholders as part of its defence against Olivetti's €53bn ($57bn) hostile bid. The move, which is likely to be dis- cussed at today's board meet- ing. could make Telecom a much harder target for Olivetti to swallow. Olivetti’s already highly leveraged bid is only pitched at Telecom’s ordinari-

shareholders. The savings shares account for 29 per cent of Telecom’s share capital. If they converted to ordinary shares, the cost of mounting a bid would increase by more than 40 per cent.

The savings shares trade at a discount of more than 40 per cent to the ordinary shares. The discount has widened sharply since Olivetti launched its bid. This is in part because of fears that

savings investors will be forced to take non-voting stock in Tecnost, Olivetti's acquisi- tion vehicle, if its bid succeeds.

The innovative scheme being considered by Telecom would probably involve issu- ing three conversion warrants to ordinary' and savings share- holders. Anybody accumulat- ing 10 of these warrants would be able to convert a savings share into an ordinary one. This would mean that savings

investors wishing to convert would have to buy an extra seven warrants in the market from ordinary shareholders.

Telecom is thought to be attracted to this particular mechanism for enfranchising savings shares because it believes it would appeal to both classes of investor and help ward off Olivetti’s bid. Ordinary investors would receive cash in exchange for sharing their voting privileges.

And though savings sharehold- ers would have to part with cash, the big discount they currently suffer would vanish.

Before Telecom can announce its scheme, it needs the approval of its board and Consob. the stock market regu- latory body. This means an announcement is unlikely after today's board meeting.

Lex, Page 14

Telecom Italia defences. Page 16

European markets to harmonise trading

By Vincent Boland in London

A single stock market to trade

the shares of Europe’s top 300

companies moved a step closer yesterday when the London and Frankfurt stock exchanges unveiled plans to harmonise the way shares are traded on their order books.

The exchanges have pro- posed “core market hours" of 9am to 5.30pm Central Euro- pean time (08.00 to 1630 GMT), an unlimited Tnarimnm order size on their trading books, and a 90-day limit on how long an unfulfilled limit order can remain on the books.

The proposals are due to come in to operation in the third quarter of this year. The move towards a “super stock exchange”, which investors say they want after the arrival of the euro in January, were unveiled last July.

Separately, the London pvrhangp has begun talking to users about closing and intra- day auctions on Sets, its elec- tronic order book, in addition to its opening auction. It has again raised the possibility of extending Sets to FTSE 250 stocks and a possible move to a shorter settlement cycle than the existing one, where trades are settled five days after being executed (T+5).

Frankfurt's Xetra electronic order book already holds auc- tions several times a day and settles at T+2. The exchanges are understood to be aiming for a uniform T+l settlement cycle, considered the interna- tional norm.

On January’ 4, London and Frankfurt repatriated trading in each other’s listed securities and offered members direct access to the two markets. Nei- ther development was seen as dramatic since non-domestic trading volume was relatively small, while most large brok- ing firms were already mem- bers of both the London and Frankfurt markets.

The changes to trading hours mean the Sets order book will open one hour ear- lier, while the Xetra order book will open and close 30 minutes later.

The change to maximum order sizes will not affect Frankfurt, which has no size limit on a trade, while London sets a limit of 20 times the “normal market size”. The change to order duration will see London extend its limit order validity period from 31 days, while Frankfurt will cut its period from up to one year.

Merrill’s brave new world

First the UK. now the world.

In 1997 Mercury Asset Management formally published for the first time Its views on investment strategy for UK pension fund clients.

Now. as Merrill Lynch Mercury Asset Management, it is expected by its new bosses to acquire global institutional business, in four base currencies anyway, including dollars, yen and euro, as well as sterling.

One response is the fatter Investment Strategy & Structure, Global Edition. It represents a sturdy defence of the large, multi-purpose investment house in an age of specialists.

Mercury now runs about S240bn worldwide, bat its core UK pension fund business is under pressure because of poor results against benchmarks.

Can it extend the transition from running UK balanced pension funds to becoming a global multi-asset manager?

Some changes are obvious enough. For its global audience MAM has added

more asset classes.

Hedge binds, for instance, are noted for their high returns but there are warnings about survivor bias in the performance figures and the hedge funds’ lack of resources compared with those of “a large conventional manager" .

Low correlation with an expensive stock market might appear a current advantage but investors might wind up buying “noisy cash".

The passage of time can also bring new wisdom. In 1997

there was enthusiasm about emerging market equities because of the sheer growth generated by these dynamic economies. But they are now seen as only “often" dynamic, with risks more evident than the rewards.

Mercury's basic concept remains one of defining “safe harbour" assets (often bonds) that match an institution’s long-term liabilities bat which usually give only low returns.'

In practice, higher returning assets can be substituted as long as clients have a long enough time horizon to accept the short-term risks: a 20 per cent standard deviation of annual returns an equities, for

instance.

Hie promotion of equities is less enthusiastic than in the previous edition, though. This may reflect the difference in the global client base, so much more bond-oriented than UK pension funds which typically still have equity exposures of more than 70 per cent

There are also one or two hints that Mercury is worried about the level of future real returns on equities, although it quotes a consensus expectation of between 5 per cent and 7 per cent.

The competitive challenges to Mercury are clear from the document, which in itself could be seen as a response to the powerful consultants trying to grab control of the central investment decision-making processes and lock money managers away in tiny specialist boxes.

The “balanced versus

specialist" debate, observes ! MAM, is really about tbe relative ability of investment consultants and investment managers to assemble a talented team.

A multi-asset manager, it adds, can add value outside narrow specialist briefs, and for many institutions can provide “a cost effective solution that does not expose the investor to undue risk".

As for the passive fund managers that are now soaking up business. Mercury points out that although index-tracking may be cheaper, it is not more prudent.

An active manager with an active risk of, say 2.5 per cent, may well add only a tiny increment - perhaps 0.2 per cent - to the overall market risk.

The risk/return ratio is therefore potentially high- But it has to admit that the average active manager will probably underperform in the long run.

Finally, those benchmarks. Historical returns provide only a very weak guide to future performance, MAM says, even if they are nevertheless widely used.

Concepts such as “tracking error" may be useful for checking manager styles but they often have little to do with client ftnflnirial risk.

Yet in a tough world, a couple of bad years for performance can do serious damage, even to the biggest and most lavishly resourced fund management house.

Wherever... Whoever... Whatever...

Sun is dot-comming Britain, Europe, the World.

Call 01252 399364 or visit us at www.sun.co.uk We're the dot in .Com. What can we .com for you?

Sun

microsystems

Oiffli. Mam K ft W*. craa 5w.Sn tfr.im n DC ir. 14 A w*«w. * 4*1 ir al fri ^ ‘*“r'

)le

«te. Since been if which - proles- ter shift

s going lovotny. ioes not >r a pro- present next 10

initially ■out 400 -action

in? a nit. By tribute n.

ts are armed ibstan- ime ot

t was l-S per prod-

ind is next

iis is I and re is ■cur*>

•• the d to ■mes- light next

FINANCIAL TIMES WEDNESDAY MARCH 10 !9»

COMPANIES & FINANCE:

LATIN AMERICA US INVESTORS SUPPORT SPANISH POWER GROUP’S ATTEMPT TO TAKE CONTROL OF ^HILE^ jEt^CTRiCITY DISTRIBUTOR

Endesa gets second bite at Enersis

NEWS DIGEST

ALUMINIUM

By Tom Burns In Madrid

Endesa, Spain’s leading power group, will have a second opportunity later this month to gain outright con- trol of Enersis of Chile, its main investment target in Latin America, thanks to key support from US institu- tions that are shareholders of the Santiago-based elec- tricity distributor.

An attempt by tbe Spanish group to change Enersis’

bylaws in order to lift its stake in the utility from 32 per cent to 64 per cent was rejected two weeks ago when an extraordinary gen- eral meeting vote fell just one percentage point short of the 75 per cent majority required to change Enersis' statutes.

But in a surprise break- through that has enabled Endesa to renew its takeover strategy. Franklin Resources, a US fund that

owns 1-5 per cent of Enersis’ share capita] in the form of American Depositary Receipts traded on the New York Stock Exchange, dis- closed to regulatory authori- ties **>at its vote in favour of a bylaw change was not properly accounted for in last month's shareholder meeting.

Endesa’s $l.45bn bid for a further 32 per cent of Enersis was backed by eight Chilean pension funds, known as

AFPs. which control nearly 30 per cent of the utility between them. However, it apparently failed to gain suf- ficient support among US funds wbo hold Enersis ADRs.

The Enersis board yester- day approved a call, tabled by two of the AFPs repre- senting 10 per cent of the utility's equity, for a vote on the issue again at a second shareholder meeting for March 29.

Endesa believes, on the basis of tbe Franklin Resources disclosure and on evidence of the voting inten- tions of other funds holding Enersis ADRs. that it now has sufficient backing to clinch a statutory change and implement its equity acquisition. Shareholder endorsement for Endesa tak- ing a controlling stake wil] put Enersis at the centre of an ambitious investment drive by the Spanish group

in Latin .America. An imme- diate consequence will be to block plans by Enersis to seii its 25 per cent stake in the biggest domestic genera- te:-. which is called Endesa Chile but which has no rela- tionship with the Spanish group.

Spain’s Endesa sad vigor- ously opposed this disposal. The Spanish group plans to cooperate closely with Duke Energy, tbe US utilities group.

Renault set to buy Romanian carmaker Dacia

By Haig Simonian in Geneva

Renault should next month announce it has reached a milestone in its ambitions to become a more international vehicles group with the acquisition of Dacia, Roman- ia's biggest carmaker.

The deal, expected to be closed on April 13, would give Renault control of the fourth largest vehicles group in central and eastern Europe after Volkswagen’s Skoda subsidiary in the Czech Republic and the Fiat and Daewoo operations in Poland.

Dacia, which used to have a licence agreement with Renault, made more than

100,000 vehicles last year.

Louis Schweitzer. Ren- ault's chairman, said he saw “no major outstanding issues" to prevent the take- over.

However, he was still waiting for the Romanian parliament to pass new laws granting big foreign inves- tors significant tax and regu- latory concessions.

Mr Schweitzer has enthu- siastically backed tbe idea of Renault developing a cheaper, second brand to spearhead expansion in new markets.

The idea that high qual- ity cars can only be manu- factured in western Europe is dead." he said.

However, be would not say how much Renault would be paying for Dacia, which is modestly profitable. Ana- lysts have speculated on a price of about $30m.

Mr Schweitzer confirmed that Renault remained inter- ested in buying into Nissan Motor, the embattled Japa- nese carmaker, despite grow- ing signs that DaimlerChrys- Ier may be about to strike a deal

He declined to give any indication of tbe state of Renault's negotiations, or whether he thought Renault could beat the much more established negotiating posi- tion held by the German-US group.

'*1400

Alcan shares fall after ^ warning over low prices

Shares in Alcan fed 4 per cent yesterday after the “ - r- 1 Canadian aluminium producer warned that its fret-quarter. • profits would be tower than expected due to prevailing low 7. prices of primary metal, weak European markets for fobri; i . cated products and the recession in Brazil. ; •

The company said its first-quarter net income would be > 50-60 per cent below the 30 US cents per share - before special gains - recorded in. foe final quarter of 1398; Anari; r-- iysts had expected earnings of 31 US cents. Net fncdrhe ; was USS1 17m. or 50 cents per share, in foe first quarter- .> of 1998.

The company was foe second aluminium producer ter.; ' issue a profit warning for the first quarter. Reynolds Akh/ ' " . minium said last week it would break even in the first 'Svee-T . months of 1999, blaming low prices and thQjjevafuarfion.of - • Brazil’s currency. Alcan said total shipments for fabricated -■ products during the quarter were In line with the first quar- ter last year. Alcan shares were down C$1 .70 at C$36 to - morning trading yesterday. Scott Morrison, TorontoV..

■> •* • '

FOOD .. -

Heinz is ‘on target’ ; ; t

HJ Heinz said yesterday It was on track to meet expecta- tions for foe y ear. despite an anticipated reduction to -i fourth-quarter operating income. The company reported v f third-quarter earnings per share of 60 cents before, excep- ^ ttonai items, against 55 cents last time.

Heinz said earnings excluded a restructuring charge for ' and costs related to the consolidation of its Ore-tda Foods * and Weight Watchers Gourmet Foods units. Inducfing • :

these charges, third -quarter earnings were 33 cents @0 « cents). Sales in the third quarter rose from $2.24bn to ' •• . - i ' S228bn. AFX, Pittsburgh \ ’*

Sporting chance: Bentley unveita its 16-cyOnder ‘Hunaudieres' model at the motor show m Geneva *= energy

GM reveals expansion plan Fiat to issue €lbn loan

By Hafg Simonian in Geneva

General Motors yesterday announced ambitious plans to expand its European sales and- market share 'While rec- ognising demand and pricing in most countries would deteriorate this year.

Michael Bums, president of GM Europe, said be expec- ted European car registra- tions to drop by between 500.000 and 600.000 compared with 1998.

However. GM was confi-

dent that Opel/Vauxhall and Saab, its European brands, would improve their shares through new models and improved quality and reli- ability.

Mr Bums admitted that Opel had suffered from image problems, caused partly by inconsistencies in GM’s European strategy.

However, he said new models, such as the Zafira people carrier due in May and the latest Astra small family car, would attract

new and previous owners.

■ Audi, the executive cars subsidiary of tbe Volkswa- gen group, confirmed the gloomier outlook among many carmakers for Europe this year.

However, it said it hoped new models would allow it to raise sales despite more difficult circumstances in many countries. Audi said its European market share in the first two months of this year had fallen slightly compared with 1998.

By Paid Betts in MBan

Fiat, the Italian motor manufacturer, yesterday said it would issue a €lbn ($91 8m ) five-year loan soon to take advantage of favour- able market conditions.

But Paolo Fresco, chair- man. did not disclose how the group intended to use the new funds, except to say “we have many ways of using them".

The company’s Fiat Finance and Trade arm has

given the mandate for the loan to Mediobanca. Deut- sche Bank and Morgan Stan- ley Dean Witter.

Mr Fresco, speaking at the company’s centenary cele- brations. would not discuss Fiat's merger.

Asked if it was interested in Volvo’s truck operations or Scania - the Scandina- vian truck manufacturer - Mr Fresco said "never say never*.

Giovanni Agneli). Fiat patriarch and honorary’

Bayer, BASF show resilience

Roche chairman to retire

By Uta Handschfeger in Frankfurt

Bayer and BASF, the German chemical and phar- maceutical makers, yester- day defied forecasts of disas- trous 1998 earnings and proved relatively resilient against the negative effects from the crises in Asia and Latin America.

But despite satisfactory earnings, which may cause some revision of analysts’ most pessimistic expecta- tions for 1999, observers said it was too early to give the “all-clear’’ signal for Ger- many's chemicals industry.

BASF, based in Ludwig- shafen, warned of more trou- ble to come. “The chemical industry and BASF are expecting 1999 to be a more difficult year, as a result of sustained pressure on prices," it said.

But despite falling 1998 sales - BASF sales were down 3.1 per cent to DM54.07bn from DM55.78bn <€27-6bn, SSO.lbn from €28Sbn. $31bn) and Bayer’s sales fell 0.2 per cent to DM54.9bn from DM55bn - both companies increased their profits. BASF's net profit rose 2.7 per cent to DM3.32bn from DM3 .24 bn. and Bayer’s net profit was up 7 S per cent at DM3-2bn from DM2.9bn in 1997. Both companies’ sales were below analysts' expectations, while profits exceeded estimates.

Compared with Bayer, whose activities are almost evenly divided between chemicals and pharmaceuti- cals. BASF earns far more money from chemicals and related products. As a result it is more sensitive to pres- sure on selling prices as well as lower petrochemical mar- gins. which have been foil- ing along with oil prices.

“Both results are signs that the chemical industry as a whole was seen in too bad a light.” said JQrgen Trojan, at Deutsche Ge&os- senschaftszentrale in Frank- furt Last week, the chemical employers association reported that 1998 industry sales fell 1.6 per cent to DM227.4bn, due particularly to lower exports. For the first three months of 1999 the association forecast fur- ther falls.

Bayer, based in Lever- kusen, sent a clear signal to investors that It perceived its stock as undervalued. It said it would ask sharehold- ers to approve a share buy- l back of up to 10 per cent of its shares. “It wants to [show] that its shares are too cheap and that buying its own stock is the best invest- ment it can make," said Mr Trojan. Bayer plans to issue convertible bonds and bond warrants to pay for this.

BASF shares closed down 40 pfennigs at DM31.40, while Bayer closed down 20 pfennigs at DM32.8Q.

By WBfisn Hafl in Zixich

Fritz Gerber, probably Switzerland’s most success- fill business leader of his generation, plans to step down as chairman of Roche in 2001 after more than 20 years and hand over the chairmanship to Franz Humer, Roche's chief execu- tive.

Mr Gerber’s decision to announce his retirement ends months of speculation about the succession at Roche, which is still con- trolled by the same families that founded the business in 1896. Mr Gerber. 69, a law- yer, is credited with reviving the fortunes of Roche, which

was struggling in the 1970s after foiling to find a replace- ment for Valium, the world's first block-buster drug.

Roche yesterday- announced a 3 per cent rise in 1998 net income, to SFT4.39tm (S3bn). and plans to increase its dividend by 5 per cent to SFr87 a share. Operating profit rose 21 per cent to SFr4J5bn on a 31 per cent rise in sales to SFr24.7bn. Growth in net income was held back by a 31 per cent drop in non-oper- ating income to SFrl.OBbn.

Mr Gerber, unlike most of Roche's previous chairmen, did not come from the phar- maceutical industry. He arrived at Roche in 1978

after 20 years at the Zurich Insurance company. He con- tinued to combine the role of chairman of Zurich, as well as chairman and chief execu- tive of Roche, until 1995.

Under Mr Gerber. Roche cut costs, cancelled ill- prepared diversification moves, and refocused its research effort.

Over the past decade, its earnings have grown at a compound annual growth rate of 25 per cent and it bas built one of tbe best new drug pipelines in the indus- try. Analysts are particu- larly excited by the pros- pects of Xenical. Roche's new anti-obesity pill, and its anti-influenza drug.

chairman, said that the group was “still too small" in the current global market and that it was "keeping its eyes open to all opportunities".

• Investor, the Swedish investment group, said yes- terday ii was still ready to discuss the future of Scania, the truck and bus maker, with potential buyers, send- ing Scania shares to a high of SKrt!i?.5 a 2 per cent gain. The shares settled at Skr215.5.

Merger doubts follow Lycos rift

By Richard Waters in New York

Buffett warns on margins

By Tracy Corrigan in New York

Berkshire Hathaway, the investment vehicle run by the legendary investor War- ren Buffett, yesterday reported continued growth last year, in its direct insur- ance operation Getco, but warned that margins will “almost certainly decrease" in 1999. However, investors and Buffett watchers keen to discover whether Mr Buffett has beaten the performance of Standard & Poor’s 500 index for the 18th consecu- tive year will have to wait until Saturday, when the company's annual report will be posted on the inter- net

Yesterday, Berkshire reported net earnings of $2.8bn in 1998, up from $1.9bn. The earnings were made up of $l.28bn in earn- ings from operations and $1.55bn in realised invest- ment gains. But the year-end net asset value, which is the most closely watched indica- tor of tbe investment group's performance, will be dis- closed in the annual report However, at the end of the third quarter, the net asset value was 2.6 per cent down on tbe year, while the S&P 500 was up 5 per cent lead- ing analysts to speculate that the company might end its strong run of beating the Index. However, the Decem-

ber acquisition of General Re, the US Insurance group which is now Berkshire's largest operating company, is expected to have boosted net asset value.

Geico’s underwriting profit margin of 6.7 per cent last year was “well above" tar- get Berkshire said. General Re was included in Berk- shire’s earnings for only 10 days of last year.

In addition to the revela- tions of the annual report, shareholders can look for- ward to hearing Mr Buffett's words of wisdom when they gather for the ritualistic fes- tivities of the annual meet- ing in Omaha. Nebraska, starting an May 1.

Telecom Italia bolsters defences

By Paul Betts in MBan

Telecom Italia yesterday was further sharpening its defen- sive strategy against Oli- vetti's €53bn (S57.7bn) hos- tile bid expected to be unveiled today after the boards of Telecom Italia and its 60 per cent cellular sub- sidiary Telecom Italia Mobile (TIM) meet.

TFM yesterday said its board would not only exam- ine today its 1998 results but also call a shareholders meeting. Financial analysts in Milan said this suggested that Telecom Italia and TIM were likely to announce finally their merger plan as part of the former’s new industrial strategy but also as a defence against its much smaller Italian tele- communications rival.

Carlo Camerana, a board member of Ifil, the Agnelli-

Fiat family holding company and influential Telecom Italia shareholder, did not exclude the possibility or Telecom Italia acquiring directly TIM shares.

Franco Bernabe, Telecom Italia chief executive, had already announced his inten- tion to merge Telecom Italia and TIM. said Mr Camerana. “If it then did not turn out to be a merger but the acquisi- tion of TIM shares, why not," he added.

Other defensive actions under consideration were a possible share buy back, tbe conversion of Telecom Italia non-voting savings shares into ordinary voting shares, and the payment of a special dividend, banking sources said.

These defences, as well as Mr Be mate's new Industrial strategy, would be backed by the €20bn syndicated loan

which three of Telecom Ital- ia’s banking advisers are seeking to put into place. The three advisers are Credit Suisse First Boston. J.P. Morgan and Italy's Imi.

TI was also understood to be seeking a preliminary credit assessment on its jumbo loan that would bet- ter the A- rating given to Olivetti by Standard & Poor’s when It evaluated Oli- vetti's hostile bid.

Bankers yesterday expec- ted Telecom Italia to com- mand a slightly better rating than its rivaL It had about €9bn of debt at tbe end of last June, while TIM was vir- tually debt free. A merger of Telecom Italia and TIM would enhance tbe rating, bankers said.

Innocenzo Cipolletta, director general of Co nf In- dus tria, Italy's employers confederation, noted yester-

day that indebtedness was also a means of accelerating and strengthening corporate restructuring.

Standard Life Investments, the fund management arm of Europe’s largest mutual insurer, yesterday gave a further boost to Telecom Italia by saying Mr Bernabe now had the support of investors holding more than 20 per cent of Telecom Italia shares.

Leon de Jerez, head of European equities at Stan- dard Life, said that 12 per cent of Telecom Italia inves- tors were “definitely com- mitted" adding “hut we have more than 20 per cent who are firmly opposed to the bid".

The role of institutional investors is expected to be critical in the ultimate out- come of tbe takeover battle.

Telecom Italia also con-

firmed yesterday the resig- nation of Luigi Montella. chief executive of its engi- neering subsidiary Slrti. Mr Bernabe bas already indi- cated that Sirtl was one of the assets Telecom Kalia planned to dispose of in its new business strategy.

In a separate development. OP Computers, which took over Olivetti’s former loss- making personal computer business, yesterday asked to be placed in temporary receivership. Olivetti sold the company in 1997 to Pied- mont International con- trolled by Edward Gottes- mann. the UK-based American financier.

Olivetti holds about 20 per cent of Piedmont and said it was ready to cancel L88bn i€45.5ra, $50 m) of credits Owed to U as well as provide financial support to OP Com paters' management.

The rift between Lycos and its biggest shareholder wid- ened yesterday, casting fresh doubt on the internet media company's plan to merge with Barry Diller’s USA Networks.

The last significant inter- net “portal" company to remain independent of a larger media group, Lycos’ shares jumped by 18 per cent on the news, reflecting a belief that it would be forced l to renegotiate tbe merger or seek an alternative partner.

Tbe rift with CMG Infor- mation Services - which owns 18.5 per cent of tbe internet company - came to the fore as David WetherelL chief executive of CMGI. resigned from the Lycos board.

Mr Wetherell was a foun- ding board member of Lycos when it was created in i995. One of the most successful early investors in internet start-ups, be said he had quit to give himself freedom to pursue better terms for the merger.

The dispute over the value the deal placed on Lycos broke out almost as it was announced and has become a focal point for the debate over the high value Wall Street has put on internet stocks recently.

Mr Diller - one or the most successful US network television executives before branching into home shop- ping - has argued that most internet companies are over- valued. He said last week he retained “an abiding, if tem- porarily unfashionable, belief in arithmetic", and predicted that share prices would eventually fall.

However, while supporting the strategy behind the merger with USA Networks. Mr Wetherell bas com- plained that it short-changes Lycos shareholders. As a board member he voted for the deal in February, but then withdrew his support as tbe stock market marked down the value of Lycos' stock.

Before yesterday's rebound. Lycos ’s shares had lost nearly 40 per cent of their value since the merger was announced. They were trading at S99£ midday yes- terday in New York, up S15£ on the day but still below the $137 they reached In early Februarv.

Fortum falls on low prices

Fortum, one of the largest energy groups in the Nordic region, yesterday blamed tower-than-expected full-year ’ profits on a sharp decline in electricity and crude oil prices. Tbe Finnish company, created by last year's merger of Neste and imatran Volma (IVO), saw its maiden 1 2-month profits fall to FM2-21 bn (€371 m, $403m)_from FM4.9bn on reduced sales of FM50.5bn, compared with proforma turnover of FM60bn in 1997.

Heikld Marttinen, chief executive, warned that Fortum's results would be little improved this year it foe market prices for oil and electricity remained at current levels. Th e newly-merged group still saw underlying operating prof- its fall from FM4.41bn to FM3.54bn. Mr Marttinen said foil- ing o<( prices and excess supplies of hydroelectric power . • had undermined foe results. The figures were also held back by a FM202m charge for Fortum’s liability for nuclear waste disposal.

Earnings per share fell from FM2.70 to FM1.62. A divi- dend of FM0.75 has been proposed. In Helsinki, Fortum shares fell 10 cents to €4.70. Tkn Burt, Stockholm

ELECTBICAL MACHiNERY , ' ' "

Strong yen hits Omron exports

Omron, foe Japanese electrical machinery maker, yester- day issued a profit warning and announced a restructuring plan- Omron, following in the footsteps of Japan’s elec- tronic giants such as NEC aid Toshiba, said weak globed demand and a strong yen hurt exports of its control com- ponents. The company said it would cut 2,000 jobs to 1. Iowa headcount from 18.800 to 16,800 by March 2002 and reduce foe number of directors from 30 to less "than v - 10 by July.

The group revised down sales forecast from Y570bn . - ($4.7bn) to Y550bn for the year ending March 31 , 1999 . against last yea’s sales of Y611.8bn. Omron lowered esti- ■ mated pre-tax profit before exceptional from Y14bn tor,- Y4.5bn, down 89 per cent The group said it expected to post a net profit of Y2bn against the earlier forecast of -'rM Y6.7bn and last year's profit of Y18.7bn profit The stock dosed down Y12 at Y1288. Alexandra Nusbaum, Tokyo '

MOBILE PHONES

Orange to make Hungary bid J,

Orange Communications, the UK-based mobile phone ’ operator in which Hutchison Whampoa has a large stake, . > is planning to extend its overseas presence with a bid far Hungary’s third mobile licence. It has formed an alliance ' with Callahan Associates International of the US, that wffl - be known as foe Orange Hungaria Consortium, to consider ■ the bid. ' »

The company yesterday refused to indicate the likely — value of any bid it might make. There could be substantial - competition for foe third license with British Tetecommuni- - cations, Vodafone/Airtouch and Mannesmann of Germany. - among foe likely contestants. Hungary was the first east • European country to license a mobile network.

Alan Cane

BANKING

UBS sells Julius Baer stake

UBS has sold its 6.6 per cent voting stake in Jufiu&Baer, Switzerland’s biggest independent private bank, for SFr123m ($84m). The family-controlled bank has bought back the 139,973 registered shares from UBS which has owned the stake for many years.

UBS had 1 1 per cent of Julius Baer's registered shares . and following foe transaction foe family shareholder pool " will now control all the registered shares which represent over 50 per cent of the voting stock. UBS has been sefflng off its non-core interests since last year’s merger with Swiss Bank Corporation. It raised SFrl .9bn from foe safe of Banca della Svizzera Italians and is expected to raise around SFr2.8bn from foe sale of its 25 per cent stake In Swiss Life. William HafL Zurich

CAR AND TRUCK MAKING

Saab talks confirmed

General Motors, the largest car and truck maker, yesterday* confirmed that it intended to discuss foe acquisition of foe » outstanding 50 per cent interest in Sweden’s Rnah Auto- ! mobile this year. GM bought its existing half-share Irr Saab • from Investor, the Swedish Investment group controlled by- the Wallenberg family, for $600m in 1 989. and has man- i agement control.

Under a refinancing deal in 1996, GM received an option : to acquire the other 50 per cent between July 1999 and January 2000. If the two parties do not reach agreement on this. Investor has the right to sell half its remaining 1 1 stake in Saab to GM In the year 2000. -

Confirmation that GM will consider raising its stake, given at the Geneva Motor Show, by Robert Hendry, tha . ■ . GM executive who heads Saab. Nikki TaR, Chicago L

■fr** - •

r.W A ■’ :* >■“' -,•■'■

if1:'” " ■ ■4 . - '

>=-i- ■ — : ‘

5..‘; ••-•

;.IT -

financial times

Wednesday march id 1999

★

j 7

COMPANIES & FINANCE: INTERNATIONAL

RIVAL BAISIO TAKEN TO COURT OVER SIMILARITY OF PRODUCT NAMES

Unilever acts on cholesterol reducing spread

Du bihi> — «■— A

By John Wffiman,

Consumer Industitas Editor

The race to bring the first cholesterol-reducing spread to European consumers intensified yesterday when one of the two companies involved took the other to court for trademark infringe- ment.

Unilever’s Dutch subsid- iary started summary pro- ceedings in the district court in The Hague against the makers of Benecol, a spread already on sale in Finland, alleging the name was too

similar to its own Becel brand.

The Anglo-Dutcb con- sumer group, which hopes to launch its own "Flora pro-

activ" cholesterol-busting spread in Europe within a few weeks, also says plans to market Benecol as healthy for hearts would damage the positioning of Becel.

Unilever has built Becel into the market leader in Belgium, Netherlands and Luxembourg over 35 years with a marketing campaign to associate it with heart health.

Benecol is produced by Raisio, the Finnish food and chemicals group, and mar- keted outside Finland by McNeil Consumer Health- care, a subsidiary of Johnson & Johnson, the US group.

Both companies are racing to introduce their cholester- ol-busting spreads in Europe and North America (where Unilever's will be called Take Control!.

The two spreads both reduce "bad" cholesterol in the bloodstream, with studies showing the risk of coronary heart disease

reduced by up to a fifth.

Benecol was launched in Finland in 1995, where it sells at six times the price of conventional spreads. It needs no approval to be sold in other EU countries, unlike Unilever's product which has to be approved under novel foods legislation intro- duced by Brussels after Benecol was launched.

The legal case comes as McNeil Is close to launching Benecol in several EU mar- kets and could delay its sale in the Benelux countries. Unilever's Flora pro-activ

has been approved by the Dutch novel foods regulator, but has yet to clear the 60-day period during which

regulators from other EU countries can object.

In the US, Unilever’s Take Control is believed to he

ahead of Benecol in being approved by the Food and Drug Administration. The two products are being investigated under a new procedure that requires them to demonstrate they are "generally recognised as safe" (GRAS).

Both companies were

invited to submit to the GRAS procedure, which should take no more than 90 days to complete, at the end of last year. Approval under this procedure would not allow the spreads to be pro- moted as healthy without submitting to the much lon- ger process for vetting health claims.

McNeil believes Benecol will find a ready market despite such restrictions, with widespread awareness among consumers and physi- cians of the benefits of reducing cholesterol.

Japan wakes up late to potential of the internet

Sony's surprise revamp is an attempt to scale down manufacturing and join the multimedia age, says Michiyo Nakamoto

Norio.Ohga, Sony chairman (toft), and Nobuyuki Idd, announcing that the group vriH cut 17,000 jobs AP

De Beers earnings halve to $617m

By Victor MaHet In Johannesburg

De Beers, the South African group that controls most of the world diamond market, yesterday announced a halv- ing of its total net profit last year to $617m from S1.23bn in 1997, but said there had been tentative signs of improvement in the market since the start of this year.

Nicky Oppenheimer. chair- man, described 1998 as “a very difficult year" in which sales by the De Beers- controlled Central Selling Organisation fell 28 per cent to $3.34bn.

The final combined divi- dend was 52.3 cents, and total dividends per linked unit fell 22 per cent in 1998 to 80.2 cents from 102.8 cents. The figures combine the results of Johannesburg- based De Beers Consolidated Mines and De Beets Cente- nary AG of Switzerland.

Mr Oppenheimer called it “a prudent dividend’ given the harsh trading conditions, but said dividend cover had fallen anyway.

The results were at the lower end of analysts’ pre- dictions, and De Beers shares in Johannesburg fell R6 or 5.6 per cent to R100.

Diamond stocks were $A82bn at December 31. up 8 per cent from the previous year, but Faddy Kell, finance director, said this and other figures had been affected by the consolidation of C SO companies. De Beers, part of the Anglo American con- glomerate, has been simpli- fying its cross-holdings with other members of the group as Anglo prepares to move its headquarters and pri- mary stock exchange listing to London in May.

The diamond market dete- riorated in the second half of last year but the mood had improved in 1999 after a strong Christmas in the US. De Beers said. Stocks of rough diamonds in cutting centres had been run down as a result of De Beers’ sales restriction over the past 18 months and because of reduced supplies from war- torn Angola and the Demo- cratic Republic of Congo.

De Beers, however is main- taining a cautious stance and says it will be hard to boost overall sales signifi- cantly this year unless retail markets in Japan and south- east Asia improve.

Sony's surprise announcement is a wake-up call for Japan, which has let the explosive growth in internet -based computer services largely pass it by.

The plan Sony presented to reduce its manufacturing j capacity and consolidate its electronics businesses to focus on networks aims to fundamentally change the way the group operates.

"It is a fundamental restructuring.” emphasises Nobuyuki Idei, president and joint chief executive. “We have to restructure while we can. while we still have prof- its,” he says.

There is a hint of urgency in Mr Idei's tone. That is not surprising, given that Sony is expected to report a loss in the fourth quarter for the first time in four years. In the year to March, consoli- dated pre-tax income is fore- cast to fall 21 per cent The company's electronics business, its biggest revenue earner, has suffered a plunge in -profitability due to weak demand in key markets and falling prices.

But more importantly, Mr Idei is in a hurry to trans- form Sony into a company that is squarely at the fore- front of the multimedia age.

In spite of its vast techno- logical wealth, its software assets, superior marketing expertise and unparalleled

By Jim Kefly

Andersen Consulting shrugged off any effects of Us protracted separation pro- ceedings with its sister firm Arthur Andersen to report a 35 per cent surge in global revenues in 1998 to $&3bn.

Andersen Consulting, which became a stand-alone business in 1989, has recorded three years of growth of 25 per cent or more. It will see this success as vindication of its policy of separate development

-In Europe we have enjoyed our most successful

brand recognition, Sony has not been a big beneficiary of the internet age and of net- working businesses that are driving the US economy.

"Japan is way behind in the internet and the gap is widening," he warns. There are no businesses compara- ble to those in the US that are thriving as a result of the internet

“People like Steve Case at AOL are like rock stars and they make Sony look like part of the establishment" he says somewhat forlornly.

If Sony Is to break out of that establishment mould and join the new “stars" of the multimedia age, it can- not remain a conventional electronics manufacturer, content to simply manufac- ture hardware, no matter how advanced the technol- ogy.

Through his latest reor- ganisation, Mr Idei is trying to transform Sony into a company that is more In tune with the new age in which software and the dis- tribution of contents pro- rides the added value that is critical to the success of the hardware.

As such, manufacturing is no longer the critical activ- ity it used to be for Japanese electronics manafacrurers. If Mr Idei could have his way, he would get rid of more manufacturing facilities that stand in the way of success

year yet with revenues exceeding S3bn for the first time.” said Vernon Ellis, managing director for Europe. Middle East, Africa and India.

Andersen Consulting invested heavily in brand building in 1998 with the first redesign of its logotype and an aggressive sponsor- ship campaign of special events: “A powerful brand name is critical if Andersen Consulting is to differentiate itself from competitors in a converging market,” said Mr Ellis.

Meanwhile the two sister

because they destroy, rather than create, value.

“Sony should not do OEM business. We don't want to be a sub-contractor to com- puter manufacturers. There are areas (which we don't need), like the manufactur- ing of CD-ROM drives. It is difficult to quit but it will be done within one or two years," he says.

PlayStation. Sony's phe- nomenally successful video games machine, succeeded in part because Sony Computer Entertain- ment - the company that makes it - was able to use Sony's manufacturing facili- ties rather than build its own. Mr Idei points out.

The added value that Sony needs to offer will come from the synergies of hardware, software and distribution that are increasingly real- ised in network businesses. Yesterday’s reorganisation lays the organisational foun- dations for that shift.

While the changes in Sony's market environment

firms are appearing before a Paris court of arbitration over their long-running turf war in which both have clashed in the consulting market. Observers expect the court to break their remaining ties - but at a price. Both firms have made substantial claims.

Andersen Consulting's results - at least comparable with leading competitors - will be put forward as evi- dence that the dispute has not sapped energies or blurred the firm's focus on providing high-level strate- gic advice for multi-national

are forcing it to transform itself, the pressures the com- pany faces to raise share- holder value are equally strong.

“About 40 per cent of Sony's shareholders are for- eigners so we need to be con- cerned about shareholder value. If our share price is so low, we might be taken over." he warns.

But there are no business models Mr Idei can turn to. Much as he seems to admire AOL and Yahoo!, these com- panies “are virtual portable companies. They are con- tents aggregators, but we have manufacturing facili- ties so we are a little differ- ent. In that respect. Dell is somewhat more similar to what Sony sees as a model." he says.

Somewhat surprisingly. Mr Idei points out that Soft- bank comes closest to pro- viding Sony with a business model. Softbank, founded by Masayoshi Son. its contro- versial president, has grown at a phenomenal pace through acquisitions of and

companies. Arthur Ander- sen's results have also remained robust.

Arthur Andersen's UK rev- enues touched £545di ($872m) - up 23 per cent - with more than £50m of last year's reve- nues coming from overseas placements of UK staff.

“We increased our reve- nues by nearly a quarter and recruited over 400 top gradu- ates." said Janies Hall. UK managing partner.

The firm’s revenues grew at 24 per cent In the Ameri- cas, 33 per cent in Europe. Middle East, Africa and India, and 1 per cent in Asia

investments in internet busi- nesses. It is a shareholder in in Yahoo!.

“I am very dose in think- ing to Son. He always teases me that even though Sony is a big company, we are doing the same thing." Mr Idei laughs.

Like Softbank, which is almost like a holding com- pany, the reorganisation announced yesterday will make Sony headquarters an “active investor”, less involved in the day-to-day operations of each of the businesses and more focused on overseeing the group.

Like Mr Son, Mr Idei has dearly been converted to the pursuit of value in the opportunities opened up by the internet. The same can not be said of Japan as a whole. “There is so much potential in Japan. Unless action is taken quickly (to meet the challenge of the internet!, it will be a tremen- dous waste," he says.

Sony's latest move is no doubt calculated to avoid that fate.

Pacific. It has 65,000 staff compared to 21.000 a decade ago.

Its largest industry prac- tices grew strongly in 1998 - financial services jumping 33 per cent to S2-5bn, com- munications 30 per cent to $lJ2bn, and energy up 41 per cent to $614m. Chemicals and health services, both jumped 42 per cent, the larg- est increases.

The firm invested J585m in internal training - up 38 per cent over the previous year - and $5S8m in research and development - up by 29 per cent.

Branding buoys Andersen Consulting

Zurich adds $lbn charge to lift reserves

By William HaB in Zurich

ami Andrew Bofger In London

Zurich Financial Services, formed from last year's merger of Zurich Insurance and BAT Industries financial services arm. is adding an extra Slbn to its already announced $1.4 bn restructur- ing charge, mainly to strengthen its reserves after the acquisition of Eagle Star’s underperforming □ on- life insurance business.

Rolf Hiippi. ZFS’s chief executive, said the need for the additional increase in reserves was the main rea- son the terms of the merger bad been renegotiated and Zurich Insurance's stake bad risen from 55 per cent to 57 per cent of the combined entity. However, at the time of the merger there had not been enough evidence to prove that BATs Eagle Star insurance business was not adequately reserved.

Mr Hiippi said that the integration of BAT's finan- cial services businesses would inevitably lead to additional job losses and office closures in the UK. To date, the group has announced 1,600 job losses, most of them in the UK. ZPS is also taking an additional $200m of restructuring charges and writedowns, which now total $800m.

However, Mr Hiippi insisted the need to boost reserves had not shaken his enthusiasm for the merger. The integration was “mov-

ing faster and proving to be more extensive” than planned, and be expected annual costs savings would increase from the already announced $4 00m to SSOOm by 2001.

Zurich's decision to boost its restructuring charge by 70 per cent led to a sharp drop in the shares of Allied Zurich and Zurich Allied, the two quoted holding com- panies of Zurich Financial Services (ZFS). Lewis Phillips of Fox-Pitt. Kelton in London, said the news was "disappointing" but it would not alter his estimate that the group would earn $2.8bn in 1999 and $3.3bn in 2000.

When the merger was announced more than a year ago Zurich disclosed a one- time $1.4bn restructuring charge for 1998. The figure was reconfirmed at last Sep- tember's half year results and Zurich indicated that $700m-$800m. or more than half, would be used to increase underwriting reserves consistent with the existing standards of the Zurich Group, the Swiss partner.

However, the group now plans to double the $80Gm it had earmarked for the strengthening of non-life technical reserves to $1.6bn after a review of all non-life insurance liabilities and recent claims experience. It primarily reflects US and UK asbestos and pollution haz- ard exposures.

Gucci chief agrees to reopen

LVMH

By Ian Bicfcerton in Amsterdam and Alice Rawsthom in London

Domenico De Sole, president of Gucci, the embattled Ital- ian fashion company, has agreed to reopen negotia- tions with LVMH, the French luxury goods group, in an attempt to resolve the legal battle between them.

However. Mr De Sole did not appear to have softened his attitude towards LVMH's proposals to forge a trading relationship with Gucci. “We have done a tremendous job of running this company and don't need any help from anyone,” he said-

Tbe two groups have been at loggerheads since LVMH. which owns the Givenchy and Louis Vuitton luxury brands, revealed earlier this year that it had stealthily acquired a 34.4 per cent stake in Gucci.

Bernard Arnault. LVMH’s chairman, has since striven to persuade Gucci to collabo- rate with his group. He and Mr De Sole started discuss- ing a standstill agreement on LVMH's rights as a share- holder last month, but failed to agree terms.

The conflict flared up when LVMH proposed appointing a nominee direc- tor to Gucci’s board. Gucci, advised by Morgan Stanley,

talks

opposed the request and announced it was issuing 20m new shares (the same number as LVMH owns) to a newly created employee share option plan (Esopi.

LVMH. advised by Gold- man Sachs, asked a Dutch court (Gucci is quoted in Amsterdam) to declare the Esop unlawful. Last week, the court froze the voting rights on both the Esop shares and those of LVMH in a preliminary ruling pending a final hearing due to start on April 22.

Ii also ordered the two groups to try to resolve their differences by negotiation. LVMH immediately offered to reopen discussions in a letter to Mr De Sole, who accepted that offer in a letter sent yesterday.

So far. neither side show's any sign of moving from its original position. LVMH pro- posed recommencing negoti- ations on the basis of a standstill agreement, which was rejected by the Gucci board last month.

Nor is there any sign of compromise by Mr De Sole, who has maintained that LVMH should make a full bid for Gucci, which it would be obliged to do If the com- pany was quoted in London or New York, rather than Amsterdam.

•n «. N.;

PDVSA’s oil dream evaporates

Raymond Colrtt examines the critical situation for Venezuelan producers and workers

The mood at PetrOleos de Venezuela, the state oil com- pany, has been gloomy in recent weeks. The grand expansion plans to double its output and secure Venezue- la’s position as one of the world’s top three ofi produc- ers have all but evaporated.

The collapse to global oil prices has triggered a series of draconian budget cuts that have plunged the econ- omy into deep recession, while increased intervention by President Hugo ChAvez's ministers threatens to down- size the company further.

Like other oil companies, PDVSA has seen its reve- nues plummet over the past 18 months as a result of declining oil prices. But in addition, PDVSA has had to bear the brunt of a 525.0® barrel per day production cut that Venezuela agreed last year with other leading oil producing countries in an attempt to stem dwindling prices. Crude oil exports could reap as little as J9-5bn thte year, down from more than SISbn in 1997-

While the ofl sector was roaring ahead at a cent growth rate m i®7. it contracted by 1 per cent last year and is expected to fen by another 1-2 per cent this

year. Hundreds of service and supply companies, which had been gearing up to meet the needs of an oil sector - set to expand in the next decade - are now oper- ating at 30 to 50 per cent of their capacity and have fired some 30,0® workers.

“The situation is critical and there appears no imme- diate hope for a recovery of the public oil sector." says Luis Eduardo Paul, head of Venezuela's association of petroleum companies.

PDVSA is having to cut spending by more than 36 per cent of its 1999 bud- get, already the smallest in 10 years. Even so, it still has an estimated financing requirement of $2.4bn.

Earlier this week. Roberto f^anriini- PDVSA's new pres- ident, sought to placate employee concerns, saying there would be no immediate salary reductions- Yet lie also announced austerity measures across the hoard and hinted at personnel reductions. “We will reduce or eliminate all aspects of our administration that do not directly generate

results,” he said.

Following a big corporate restructuring that began early in 1999 a*d merged

subsidiaries along functional rather than regional lines, about 14,000 of the 42,000 employees are estimated to be surplus. According to internal company proposals, most are to be laid off over the next 10 years.

Yet analysts say it is not only falling oil prices that are behind the most recent cost-cutting measures - it is aien the intent of the new government to shrink PDVSA so as to free resources for non-oil eco- nomic activities as well as increased social spending.

Mr Chdvez has repeatedly accused PDVSA of being a state within a state and lashed out against allegedly lavish spending by its execu- tives. He heightened fears of increased government inter- vention in PDVSA when he appointed two military offi- cers to run the company’s

finance /personnel and plan- ning departments. To help plug its growing budget defi- cit the government is now said to be demanding increased dividend payments from PDVSA.

“It is being run down. The government is decapitalising' the company," says Andres Sosa Pietri, former PDVSA president. “If things con-

tinue at this rate, the com- pany is going to lose its competitiveness.”

Critics say excessive aus- terity at PDVSA will not only diminish its production capacity and hence its future fiscal contribution, but could also provoke a flight of human capital

Yet the government's plans are already facing opposition from business and labour alike. They have warned it not to extend or deepen production cuts at the meeting of the Organisa- tion of Petroleum Exporting Countries later this month. Unemployed oil workers in the port city of Barcelona went on hunger strike last week demanding jobs.

Many Venezuelans acknowledge the country's over-dependence on oil. Yet few see an immediate alter- native to it “The problem is that nous of the govern- ment's proposed alternatives - tourism, agriculture, gas or petrochemicals - will pro- duce significant returns in the short term,” claims Mazhar Al-Shereidah, a critic of PDVSA’s former expansion plans.

See Capital Markets See Commodities

| CREDIT LYONNAIS

US$100,000,000 Floating race notes 2003

The notes wM bear Interest at 5% per anmm for the period 10 Nandi i 999 to 10 September 1999. Interest payable on 10 September 1999 wfll amount to US$12778 per US$S,000 note and US$?,S5556 per USS 100.000 note.

Qobal Agency and Trust Services, Gtfank, NA, London

110 March 1999

LEGAL NOTICES

Ay/T/&fI<VL«.7/EER

THE EDINBURGH INVESTMENT TRUST PEC A fttiime luving hen prrMunf in ihc

Conn t.i_ SeuiiMi M M February IW by

The Edinhaivh In-cMmcm Trail puhlk- limned company, a puhlk: cumpuy incorporate under Lhe Campawcv AO and hit icf & mpitend office nl I ClurtnOc Square. Edinburgh. EH2 4DZ. for cunitrautinu i f a reduction of Us capital, dv Court pranunncod ibe uDdemuied interim utoroa February IW9

Eifinhugh. 26 fthnniy IW .

The LcnJ Ofdtnary appoints lhe pcul«m to he intimated .«i the walk m common lien and to he ndvtnlvd oner m The Eafinhtnrti Gazenr and In rxh rtf The Frnaanil Times aad Scotsman newspaper* and appoints all parlies claimlDj: an iniemi 10 luifee Am aicrs them). If to advised, within 21 Jays aim inch inlmuKw and advenisemem.

RiniUDMidik

All of which munwiMi h hereby given

L emBAM&J

Mac lay Murray A SpMtv SHiocors lor the Petitioners J GtealiaLi* Sum Edmhorph EH.16A0 -

Halifax Pic

US$500,000,000

floatrig rare notes September 1999

Node® Is hereby *wen that the nows wH bear Interest at 59S per anmm from 10 March 1999 to 10 June 1999. Interest payable on 10 June 1999 wifl amount to USS l L7B per US$1,000 now. USSI27JB per U5$IQJK» note and USS I J77J8 per USS 1 00,000

note.

Global Agency and Trust Services, □tdnnk. NA. London

I 10 March 1999 I

l CmBANKCfj

BanKCflreiana

U.S. $300,000,000 Undated Variable Rats Nates Notice is hereby given that the Rated Merest has been fixed at 6.00% and that the interest payable cxi the relevant Insures! Payment Date June 10. 1999 against Coupon No. S8 In respect of us$100,000 normal ot the Notes rilbe UStl.533 33.

Global Agency are Tost Santas. CUbsnh. NA London Mata ift 1899

cmBm ©r i 7

Notice of Redenomination to Bondholders of

BANQUE NATIONALE DE PARIS

ITL 150,000,000,000 Floating Rale Perpetual Step-Up Subordinated Notes

ISIN : XS008 6000667

issued under the programme for the issuance of debt instruments

Banque National* ds Parts, has decided ID redenominate 'he above r«fc:*es in accordance with feragrapb l uRedenotmrw'wft-i ot the Schedule to the FVIong Supplemenl dated Apnl 14, 19W

RedenananaBon Date

V11 ,7- 1999

Renonanatintion

New minimum denomination will be t own.

^denomination Method

CJtwrt* position will be lettenomtruiixi in boolc - entry loim. there will be no physical exchange oi wcurmes.

Redenomination Basis

Hie nominal ffL amount for each Neie shall be converted inio eurt* by using the Fixed Conversion Rate and rounding ihe figure to the neanoi cent, with 0.005 euro befog rounded upwards.

Cash Gonpenadion

There will be no cash condensation

Reeanventhming

With effect rrom the Redenomination Dale, iheday-coiart ir.iaion rdened to in paragraoh 51 or the Prion® Supplement will cease (a he M-T360. and shall be on the basis of the actual numba of dap elapsed divided by the actual number of days in the penod from and including the immediately preceding interest payment datetobue\clidinglh.-neiitschfduled mieresl payment dale tAdual/AduaJj-

Any reference lo business days In the p> long siflilement shat! be dc-oned to refer to a day on which the Trans-European Automated RwHunc- Gioss .settlement Express Transfer sw/em {« Taiga >/ is open.

ISIN Code

The ISIN Cede of the rodencioinaied Nolo shall be XS00954Et3-'6. Doled March 10. 1999

Banque Nadonale de Fkns iIuxL-nfootug) S.A.

As Redenomination i^ggnt ^

tie

ate. Sinr-e

las been of which * prafes- her shift

is going Novotny, does not or a pro-

present next io

initially bout 400 eaction ling a

anit. By ^tribute

•.in.

rts are arnjetl ubstan- time of

et was L9 per c prod- and is it next

this is e] and iere is ■ocu re- is the etl to lomes- light next

T'i-

■st

■a

■tt

■ir

■w

■al

■5.

■P<

■tt

“a

•h

ftr

1 r

2 i

3 r Sh

s»

1 n

2 n

3 n Bor Kn» ten

^.'-1 •s.t-'Jwi-

>«2r

■ jfryL-t-r

FINANCIAL TIMES WEDNESDAY MARQH VP1999 ]

RESULTS

										■ Dhridemds -
							Current	ok or	GOTKWraflnB	Total for	Total test
		TUmomr (Em)	pnm pm#	EPS (p)	Papuan sA	payment	it Met*	year	IB*
BBA	Yr id Dec 31	1211	h.193 1	164	(156.7 )	23.7	(243)	6.15	May 21	5.6	83	B
BAT	Yr to Dec 31	17,376	117334J	7384	(8754)	22.17	(2639 )	16§	July 1	16*	24	26**
Cabs	Yr to Dec 31	212	1204 )	3.49	(332V)	1633f	(20.03 }	2325	June 25	1,75	43	3
Cantab PkmB —	Yt to Dec 31	3.95	(7.65 J	733L	(335L)	173L	(8L)	-	-	-	-	-
Caradon	— _ Yr to Dec 31	1.545	H.717 )	134.1L*	(1294 }	39.114	(133)	63	June 1	6.6	9.5	93
	Yr to Dec 31	2JK3	(2359 1	3534	(3334 1	33L	(nH )	1.5	July 23	1	3	4.7
Coantry Ganfeos . — _	Yr to Dec 31	54.1	(48.5 \|	432	(3.51 )	1036t	(13.46)	1.45	July 1	135	215	135
Crests Care	— . Yr to Dec 31	56.1	150.9)	5.084	(5.43 )	2.1	(21 )	0.73	May 4	039	1.06	1
Criterion Props 9 mtfts to Dec 31 *	2JSJ	(5.73 J	0.77	(1.37)	736	(13.68 }	5	Apr 21	33	5	6
DBS Data	Yr Id Dec 31	6.78	(6.77)	0.026L	(0.B26L}	013L	(Z02L )	-	-	-	-	ffl
EzpameS Inti	Yr to Dec 31	1195	AIM )	113	(9.74)	1335	(10.41 )	2.£>	Apr 30	2.15	43	335
Fife	Yr to Dec 31	402	139.3 )	43514	(13)	29.70.	(835 )	nH	-	26	13	3.7
6E0 Inferactlva S	Yr to Dec 31	0364	13.06 1	17SL	(930.)	16Lt	OOL)	-	-	-	-	-
Hampden —	Yr to Jan 2	43.2	(453 1	14	(2334 )	433	(831 )	23	May 14	23	2.9	23
Honflngrion Life	Yr id Dec 31	5£6	(637\|	25.44	17.164 )	14.4Lt	(4.71 )	nfl	-	nfl	nfl	nil
HnritngluaB Props —	. 6 mshs to Nm 30	sa	(523 )	5*L¥	H33)	035L	(038 )	-	-	-	-	1
Indept Insurance	_Yrto0ec3i *	457 93	(55230 1	91.6	(823)	28.9	(25.7)	23		2.05	4	33
Kerry £	Yr a Dae 31	7,733	(1.344 )	933	(783 )	43.7t	(39.4 )	3.5	Apr 1	234	5.18	4.4
Lambert llmwlli —	Yr to Dec 31	104 .B	(1093 )	4.07*	(4394 1	183	(21 )	9.2S	May 14	5.75	123	83
Metal Bulletin	Yr a Dec 31	26.3	(24.6)	63	(538 )	39.8	(39.7 )	183	Apr 30	163	26	23
Noristi A	Yr to Dec 31	935	19 .ES )	234	(237V)	193	(25.1 )	3	Mar 31	3	4	4
Partco	- Yr to Dec 31	435.6	(386 )	21.74	(21.3)	21 2\	(21.1 )	7	May 26	6.1	ID	8.7
Pennant Inti 4> —	Yr to Dec 31	437	(4 36 )	0.641	10653 )	7.41	(7.95)	2.4	Apr 17	-	33	-
Pocbln’S 6 mtfts to Nov 30 *	193	(31.6 1	133	(1.42 \|	4.4	(43)	1	fV 19	1	-	33
Potyppe	6 mae to Dec 31	1223	1119.6 )	123	(12 )	439	143)	1 2	Apr Z3	1.03	-	333
Ramadan's (Harry) —	Yr to Sepl 27	J0.1	(633 \|	1.97L4	(132V)	213L	(12.1 1	nfl	-	4	1	5
	Yr to Dec 3!	1576	(1423 )	18.4	(16 )	14.46	(12.43 J	286	Mar 30	238	335	337
Hyland	_ Yr to Dec 31 *	611.4	(499.6 )	5.384	16.08V)	12.4	(153)	33	May 5	2 S	4.7	4.4
Senior EngmeerHig . —	Yr to Dec 31	509-6	(4793 1	493	(43.1 )	1131	(1048 }	232	June 3	234	439	434
Waterford W*wood A„	Yr to Dec 31	575.3	(4173 )	1434	(1234 1	1.74	(0.08 \|	1.4	Mar 31	135	13	1.6
Wilson CormoBy	Yr a Dec 31	3803	(312 1	443	(38 )	153	(13.1 >	4.45	June 1	4	635	538
Wyndham Motor	Yr to Dec 31	1023	(81.5 1	131	(133)	24.33	(33.08 )	5	Apr?	5	83	5
Tide Catto	Yr to Dec 31	5323	(367.2 )	41.34	(38.1 )	173	(24.4)	6.6	Jitfy 5	6	11	10
				AtMbntaUi			Qcrent	Date of	Corresponding	Total tor	Tool last
Investment Trusts		HAH (Pl	EsntaSt (Em)	EPS (ft)	payment <w	payment	dMdend	year	year
Aberdeen Conv toe —	6 mflis to Dec 31	107.59	(111.181	1.63	(0873 )	4.5	(334 )	3.2	Apr 1	33	.	78
Edinburgh Income ~ 9 mtfts to Jan 31 S	663	1763 )	0.318	(0534)	2.12	(336 j	0.9**	Apr 2	D.9	-	33
Edinburgh US Track	Yr to Jan 31	634.15	(486.64)	362	(4.05)	434	(4.86 t	285	May 25	285	435	485
Hand TR Pacific	Yr to Dec 31	60.9	[68.1 1	235	(136 1	1339	(0389 )	035	Apr 16	0.25	Oisn	0258
Mghcreft	-Yr to Dec 31 *	507	1451 )	0385V	(0.958V)	23.7	(21.1 )	4.6	June 4	435	7.1	63

COMPANIES & FINANCE: UK

BUILDING MATERIALS GROUP E134M IN LOSS AFTER EXCEPTIONALS

Earnings storm basic. Dividends shown net- Figures in bracket; are for conaspaitUng period. 4AHer exceptional charge. V«ter exceptKXBl ere®, specie) of 4p afso declared. ^Foreign income dnridend. **!nckates FlO element tOti increased capita {On reduced capital. * Comparatives lor 12 months to March 31 1998. SUS currency. * Comparawes restated. !_■ Grass premiums written. tjwtan stock. Ibtsh curacy. Hubs. {{Excludes special. #Comparatwes tor 12 montbs to April 30 1998.

Caradon starts cost cutting

By Charles PrettBc

Caradon. the building products group, yesterday accelerated its rehabilitation with investors with plans to increase sales and protect profits by cutting both prices and costs.

Jurgen Hintz, who took over as chief executive last May. said: '"Too many Cara- don businesses have been uncompetitive, losing mar- ket share and volume year after year. We aim to rebuild our market shares by offer- ing superior value to cus- tomers, underpinned by cost leadership."

Caradon ’s shares have

sharply underperformed the sector since their peak of ■J39p five years ago. since when they have fallen steadily. So far this year, though, they have outper- formed the market by more than 40 per cent as the group made progress with dispos- als.

Christopher Grant, an ana- lyst at BT Alex Brown, said Mr Hintz had “done a very good job. Caradon has had a woeful track record in terms of shareholder value since 1993 - it's been destroying value. Hintz is beginning to put things right but it will be long drawn out process. In his initial year he's done

all that can be expected of him".

Caradon yesterday reported a £1 34.1m pre-tax loss for 1338 against profits of nwm The loss was after £243 Jim of exceptional charges mostly related to riicprwgtc where previously written-off goodwill had to be written back. Turnover fell 4 per cent to £l£9bn.

The shares fell 9p to 149p.

Since September, the group has - sold six busi- nesses for £80m. including its Everest windows opera- tion. and it is in talks to sell another four.

The disposal programme will leave Caradon with 24

businesses -in four, divisions compared with more- than® . in seven, divisions % 1994.

Operating profit fettf'per cent to £U9j3m. ■ The Euro- pean plumbing andeleetrical ; businesses suffered 'from strong competition, the Ids? . of a main customer and- the- Asian economic crisis.

Profits from plumbing fdl a third to £32. lm and profits ; from the electrical dlvfidon fell 4 per rent. to. £343% - r.:

Mr Hintz saW tiKse di vi- sions had suffered; from unrealistically high prating; Margins would suffer in the short term but they would- be restored by heavy dost- cutting. . i-r

Rhodia may bid for Albright

By Lucy Smy in London and Tracy Corrigan hi New York

Rhodia, the French chemicals group, yesterday confirmed market suspicious that it was interested in bid- ding for Albright & Wilson, just a day after Albemarle, a US rival, bid £40Sm (S656m) for the UK chemicals com- pany.

Shares in Albright rose S per cent to 140p on the

expectation that any offer would have to be at least lOp higher than Albemarle’s offer of !30p a share. Rhodia said it had been in prelimi- nary discussions with Albright.

Analysts said a merger with Rhodia, which is 68 per cent owned by Rhine Poul- enc. the life sciences com- pany. would have more obvi- ous product overlaps and potential for cost savings

Resilient

performance in

difficult trading

environment

Preliminary results for the year to 3 1 December

1998

OPERATING PROFIT PRE-EXCEPTIONALS £1,550111 PRE-TAX PROFIT £738m

EARNINGS PER SHARE 22.2p

ADJUSTED EARNINGS PER SHARE 46.1p

DIVIDENDS PER SHARE 24.0p

1997

£1,591171

£875m

26. 6p

49.1 p

Operating profit, at £1,550 million, was 1 per cent higher in local currency before US tobacco settlements costs and a sales tax recovery in Brazil.

The decline in pre-tax profit and earnings per share was principally due to the initial costs of the US tobacco settlements of £61 3 million (1 997: £258 million).

Against a global cigarette market which is estimated to have declined. Group volumes for the year were slightly ahead with the growth rate moderated by reduced volumes in the US and Asia-Pacific. There were good performances in Latin America, Europe, Amesca and Canada.

The Board is recommending a final dividend of 1 6p, which will be paid on 1 July. At the time the proposed merger with Rothmans was announced; a special interim dividend of 4p for 1 999 was also declared, which will be paid on the same date.

"The focus of our attention in 1 999 will be on managing the business in line with our long term strategy in a difficult trading environment. We will also be ensuring that the integration of the Rothmans business, once the necessary shareholder and regulatory approvals have been received, goes as smoothly as possible."

Martin Broughton, Chairman

FuS financial suttmencs tor the year ended 31/1 2/93 ml be delivered u the Reguuar of Campania and cany an unquaified audit njpjit The 1998 Annual Report r. bong jxmed lo ihatrtnkfen at the end oi Math. Copies eC the prdanrw? annountemer* mm be eftjutned hem ttw Compaq Secretary. Sntah Amwfcan Tobacco pj.c , GM* House, 4 Ten** Place London WC2P 2PC.

than with Albemarle.

Albright's main products are surfactants, used in detergents, and phosphate- based chemicals. Rhodia also specialises in these, while Albemarle mostly makes bromide-based chemicals.

Most analysts said they did not expect Rhodia to make an offer before it was dear whether Albright had succeeded in purchasing the phosphates arm of Sohitia of

the US. Albright has made it joint bid with PCS, fe “U5-': partner, for the Solutia bust- . nesses which are valued; at more than SZOOm.

. Rhodia said-it -was-espe- . cially interested- In Albright's phosphates tafisi-. □ess. but declined to; com- ment on whether it was also looking at Solatia's :.pbosr phates arm. . , .

Albright is. advised by Xaz- ard Brothers. . ; "

NEWS DIGEST

ENGINEERING

BBA moves towards high-margin products

BBA Group, the engineer, yesterday unveiled plans to increase its revenues from services and high technology ... ’ . materials. Roberto Quarts, chief executive, suggested the group would shift Its emphasis away from its automotive division, which is seen as vulnerable to a downturn in world car markets.

Mr Quarta's plans reflect industry worries that engineer- ing groups will find tt hard to prosper if they remain suppfi- ' ere of low-margin commodity products. Last week Cook- son, the industrial materials group, said it would focus more on engineering services in an attempt to overcome increased competition.

Mr Quarts said BBA would concentrate on developing two divisions that together account for aknost 80 per cent of group sales: aviation, which offers a range of services for corporate jets; and nonwovens, which makes absor- bent materials used in products from timber cladding to nappies. “The key tor BBA is to become a provider of val- ue-added solutions for our customers,” he said.

He said services accounted for 36 per cent of sales, against 15 per cent in 1993. Over the same period the group had increased the proportion of turnover derived from consumer items from 10 to 36 per cent ■ \

His comments came as BBA revealed pre-tax profits for 1998 ahead from El 56.7m to £164m on sales up 1.5 per cent at £1.21 bn. Michael Peel

Senior hints at non-core sell-off

Senior Engineering Group yesterday hinted that it might - sell one of its divisions as part of its plan to become a specialist manufacturer of flexible metal tubes and bettows.

The group said it was focusing on developing its core flexonics businesses, which makes materials capable of- withstanding extremes of temperature and ackfrty. "ft fol- lows that anything else is non-core", said Andrew Parrish, chief executive.

His comments raised the prospect that Senior might sen its engineered products and services division, which accounts for 29 per cent of group sales. Mr Parrish decribed the division as “very much the rump of the old Senior" . The engineered products division is growing more slowly and achieving lower profit margins than the group’s other businesses. Engineered products made operating profits of £7.4 m last year on sales of £151m.

Senior yesterday unveiled 1998 pre-tax profits £6.4m '• ' higher at £49.5m, after a goodwill write-off of £1.1m. Sales rose 6.3 per cent to £509.6m. Michael Peel

TRW extends LucasVarity bid

TRW, the US steering systems and spacecraft equipment manufacturer, has extended to March 25 the acceptance period for its £4 bn cash offer for LucasVarity, the UK-listed automotive components supplier. TRW said it had control - of 44.8 per cent of LucasVarity after receiving acceptances representing 37.41 per cent of the group.

HOUSEHOLD GOODS

Japan hits Waterford Wedgwood

Waterford Wedgwood, the Irish luxury goods company chaired by Torty O’Reilly, yesterday said sluggish demand ' from Japanese tourists had undermined an otherwise “ credit able" annual performance.

Richard Barnes, finance director, said: “The slowdown in Japan has hit our domestic business there. Japanese tour- ists have also cut down their travel to other Asian markets, as well as to Europe and the US."

The company said sales in its Wedgwood china and ceramics division had fallen 5 per cent and operating prof- its 35 per cent as the Asian crisis continued and the strong pound hit exports to continental Europe. However, strong demand in the US helped lift sales In the Waterford crystal business by more than 15 per cent and operating profits by 40 per cent. In 1998 pre-tax profits rose 22 per cent to l£14.9m ($20.4m). Part of this increase was the result of a reduced restructuring charge of l£24.6m, down from last year’s I £27. 8m. Group turnover grew 38 per cent to i£57S.3m fi£A1 7 -2m). of which more than one-fifth came from Rosenthal, the German porcelain business acquired last year. Dan Bilefsky

Coats rejects merger talk

Coats Viyella, the textiles group, has rejected speculation that it might participate in further consolidation in the industry. Michael Ost, chief executive, said: “We have looked in some depth [at the benefits of a deal with another UK clothing manufacturer] and cannot see how it would create shareholder value."

The comments accompanied an 18 per cent fall. In 1998 operating profits from continuing operations to £117m. Profits were hardest hit in the UK, where Jaeger, the fash- ion retail brand, and the home furnishings side were affected by the retail slowdown and price pressures.

<24.

... X

/ „•

u* ■ — - -

iv.:

— ■«•

■■ -Jc

-”5_

fe...

■-y

L ’’ r* i ..

r:X z r, r

TTC‘.?L .-:

Jt'fV . ■

?r AlbrisA

moves towards

-margin products

V **«**.

>♦+’

f J*i#* -• f>‘S' -.■tv

? C>^;- ** •

•J--V ;

tv-;Vv - -

.;-V- *'■* • .Wr-iN..

1: -c‘

e+»Wi. .-!= :

v*: -C‘-

V- ’ .

-,-J ••. •- --. .-

f-i •«•.'. ".S'-

^ Y; ' ". '.

ft-Hr-b.

*.• - •• ••

v-* -•-•

• -

l’ .• •. ■

TS/l'" '

. '

i T; --

* •

garter--^

-*s

Wk.ii

??• rr

9 Ms '*•'

af. >*'

?. jp«f ■ :v r •: f /

w . . •

£ ‘

"5'’

A-

% ".a.-

•'S:V;' -

lews*#1- ‘ rc

:' :V-

ySL ■ if

^sS-5

Si**

FINANCIAL TIMES WEDNESDAY MARCH ,0 ,99,

EURO PRICES

equities

German jobs figures encourage bourses

CURRENCIES & MONEY

EURO SPOT FORWARD AGAINST THE EURO

On*

EUROPEAN OVERVIEW

By Fbrian Glnibet

euro-

European shares moved higher yesterday encouraged by lower-than -expected Ger- man unemployment as well as record French consumer confidence.

All eyes were on the US as markets expected the recent rally on Wall Street to come to an end.

FTSE EMoc 100

Index

°pened eener- limited damage to the ally weaker, but rebounded zone, later on higher productivity “The total holdings of Jap- . anese and other Asian stocks

marirl#1^0?6, k°”ever* ^he by European investors only markets faced lacklustre amounts to S150bn. com- sentiment and dwindling pared with a European-wide bqmdity for most of the trad- market capitalisation of S6 ^ B5me testers Sa.OOObn." said Richard mvertea funds to newly Davidson at Morgan Stanley upbeat Asian markets. Dean Witter.

*J ♦ «!“? analysts a^reed Shares in leisure and tnat the drain of European entertainment companies capital was to cause only put in some of the strongest

Range

WAftr

Dirt ntd If* tow

Dm B#a

ftoto WA

0n> iht

feta ffflt

performances yesterday. They were responding to continuously high consumer spending.

Telecoms also ended higher on the back of ongo- ing merger talk in Italian telecom sector.

Shares in Telecom Italia Mobile closed 4.58 per cent higher at €6.39. due to specu- lation over a possible merger with Telecom Italia.

On a more general Dote,

1100.

800.

Nov

1998

Jan

Feb 99

Mar

FTSE

m THREE MONTH EUH1BOB FUTURES flJFB Elm 100-rate

	Open	Sen price	Orange	w	Lora
Mar	96020	96020	-	96030	96.920
Jin	67.070	07055	-0010	97.085	97040
Sep	97080	97065	-0010	97.100	97.00
Dec	96830	06025	*0005	96045	96.785
■ THHH toOHTh EURO LBKW FUTOBSS ttJFT?)	Oro 100-rale

E st vti 14434 40078 4741 B 12895

Open Int 141075 157378 121793 B7B85

	Open	SeU price Change Hgh	la*	Eat ita	Open «.
Mar	96025	96020	+0 9602S	90920	1300	118537
Jun	97.075	97.055	-001 D 97075	97050	1078	107361
Sep	97090	97065	-0010 97090	97.070	536	93855
Dec	96035	96025	+0.005 96035	06000	2079	66106
■ THREE Mfflmi BfflO U80R 0PTRMS 00% Cm 100 -rate
SMB			■IIP .
			PUIS
Price	Mb	Jen	Sep Dec Ma	Jim	Sep	Dec
98875
97000	O.OSB	0.180	0.130 0210 0030	0.115	0305	0255
97125
97256	0.020	0.075	0.070 0.110 0215	026u	0495	0405

EsL ML Ml. Cafc S2S Pta Q. PltaM *y* H»n H.. Ctta 279247 Puta tana ■ FTSE EUBOTOP 100 HDQK FUTURES (LJFFQ C20 per hit index KM

	Open	Sett price	Orange	rtf*	Low	EsL w4	Open W.
ter	2S650	28500	+50	28650	2845.0	12SS	ran
Jun	28760	28500	+60	28760	2876.0	1	328
■ BIRO 5ITLE FTSE EUROTOP 100 MDEX OPTION (AEX) €10 pei indax point

2000 K50 2700 2750 2800 2BS0 2000 2050

CPGPCPCPCPCPCPCP Itar 254 E2B79 102 14 12B 22 83 36 B5431 8517 12

Hr 2B6352IB4420755T798BI37861BB)97 82]32E1 162

ES vo tel Pm dq/i apM need tout B.752 . pmum non m Und si —■ a pttm

OTHER INDICES

Mar

1898/99

Mg* low

Stee compfcdfcai HU Law

DJ Sob 50 3509L96 349628 3S2705 387182 243307 387082 243307

DJ EOT Sh 50 349154 3495.43 3S36.64 3B8&3B 241923 388036 341923

MSdEOTJ* 84 1212.47 121355 T31&5B 90359 ISOS m78

Sam Hnuetal nun MamuBaL "Sabjiw Id iwW ih tt?. tut ganaMML

LV.For 'realtime FTSE Eurofop 300 index quotes cal/ FT Cfty/tne on- 090& 843 5920. Calls are charged at 60p per minute at all times.

1 /TSE Actuaries Share Indices , ■ ‘European series
Mar 09 tetata 6 Regtaral Markets	Euro hda	Day's «	change potto	YWa Toss %	xd ad Ytd	IdW ram (Enrol £
FTSE Euro top 300	123935	+005	*084	2.16	314	1279.44
FTSE Euro top 100	2B59.44	+0 84	+23.70	214	807	1028.19
FJSf&torJOO	1009.77	+0.10	+ 105	200	074	10SS.75
FTSEEteUd	120601	+027	+309	278	206	125107
FTSEEteBd Ebloc	1165.74	-031	-307	234	105	121249
FIS EuraWfl Ex UK	123202	+009	+7.16	217	1.14	125651
FTSE Bmrtop 300 Regbau
EmUH	126152	*0.19	+205	1.96	iia	1288.73
UK	1212.15	*1.09	+13.11	233	7.13	128046
Europe Ex-EuuUdc	122702	+093	+11.32	208	5.10	127636
Eunpe Ex -UK	1255.85	+0.27	+134	137	0.91	128028
FTSE Etautop toduHy Sectors
RESOURCES	91808	*064	+501	317	309	964.15
Mining	90701	+1.13	+10.10	4.01	2107	949.1 B
08 6 Sat	88307	+062	+5.41	113	202	908.49
BASK WDUSms	107200	+0.08	+088	277	255	109807
Ctetnlcata	811.75	*020	+108	277	247	828.60
Cosbucnon S SU Malls	1030.00	+012	+ 106	205	1.13	104021
Fonsnv 6 Paper	900.77	-1.06	-9.61	4.2B	000	94106
G8EBAL DKWSmALS	>115-59	+0.7B	*805	227	328	1142 70
Aerospace £ Defence	79909	-100	-9.73	215	289	81149
Omsifled tndustrtato	94B07	-004	-036	2.15	one	97007
Btorortc 6 Bed Equp	1012.97	+1.63	+1608	130	5.15	102176
Engteettng ft UacMnerj	1025.40	+1.13	+11/42	232	4.16	104308
CTCUCALCOG GOODS	125508	*064	+735	127	000	1290.13
AutunoMss	92408	+004	+435	228	0.00	MS.JC
teetato Goods & Texra	(28102	*1.16	+ 14.70	122	DOS	T 291 35
N0N-CVC CONS B00OS	1243 DI	*0.70	+807	1.48	£05	137907
Bmrages	B640S	-073	-706	207	ODD	985.78
Pood Producsrs A Rncssre	93106	+000	*401	1.71	1.41	944.34
Heath	95500	+202	+2153	124	ODD	96008
Packartng	770.79	*000	+300	1.17	ODO	771.75
ftasonal Care & Hm Prods 1D9104	-012	-106	0.90	000	1101.16
FhornracwDcato	1T49L90	+100	+1158	1.16	325	1150 43
Tdacco	1398.76	-109	-2096	356	1.42	1424.74
CYCLICAL SBtVHXS	134006	+082	+10.86	207	1.74	138137
DbHufora	69408	+309	+2538	425	000	702)8
Geu Henias	1097 J3	*095	+276	292	127	1121.73
leisure Ematmt & Hotefc	1002.30	+366	+3041	139	602	1023.15
Metfe & PnoUgraphY	1260.19	*097	+1208	104	120	127430
Reas, PUs £ &mvwtes	88708	+UI	+9.72	324	171	91132
Support Sate	107806	+092	+907	1.10	1.10	109030
Traopori	35972	-078	-757	IK	101	97925
HON-CYCLKflL SEBVS	1391.64	+008	+1216	107	0.48	143208
Food & Drag Renters	101008	-040	-4.05	209	001	103602
TNecaanuncaians Sow	1395.36	+1 15	+1505	125	043	141602
tmunEs	1416.46	-004	-346	113	017	150903
BeareSy	ioraoa	-001	-0.10	306	4.44	111189
Gas DtlntwtaBi	1191.44	*069	+022	163	1.00	131289
mo	91671	-3.77	-3531	501	534	966.04
FMAHOALS	1304.73	*0.42	*5 52	257	526	(34530
Bate	928.74	-002	+753	126	503	94803
tasuaxe	963.70	-0.41	-338	1.42	097	97600
Lite Assaance	115304	*023	-208	1.72	096	116939
Imestroert Corcaniea	K704	+1.13	+1099	101	000	100438
Reel Eaime	77204	+3.40	*25.62	300	107	800.77
Spaeolcy S Daw Fin	°3BX	+041	*177	242	000	94204
affmwtrmmx	95404	-004	-006	005	001	SS706
htantallon Tech KznJware	103705	*003	+803	070	000	104002
Soffoare 6 Caepara 5ero	764.62	-271	*2101	000	0.15	76608

V«ira6wcr'as.C5!4 3i,ae. *i™!StCT" O urmatmi Ijruta is W V va menw: ■fTH jte f«a- « -iza-ii as; raw a » Lksb So® teaqt am n* 9ami t»wj at st ooe *7 FTE aCttac.m iW .r irct; 3 I »J3Ejk rax PM* 0. t* Mai SBC* ^UBqc. rlS Euttm vUa « oeoSj n HSc rcrraSS*.

FTSE EUR0T0P 300

■:^rv?AA->

m +W BnM «

PMH DM Map w 6n| + ir - £m<M M tH tan

Ml Cnjp Mtap M (bi) *»- Emm M 114

Pita Dm aaop **

(Bm) andoj M

HBOSmXtVBBKE

am tan 6.1a .2

SbAcH 149* -I

«CSF VMS -1J

nvBBSRD Bousnnus

HOUSaOUJ&TEXmB

U - 13

44 M U U Cl u 34 U U -29 *7 84 IJ

-1 IU - 13

zu u u

41 DJ U U

43 1* 15

u u u m2 • 2J u u u 224 43 14 134 U U 95 12.4 U 98 16 65

78 13 37

7 2 £1 44 47 84 43

tti • M 43 14 M

MtaMn	109	•ED	13	0.1	1J
DtaaraOf	■we	*20	45	-	23
OesnaB	:ist	• is	ED	13	2D
um	zraia	*43	134	El	10
Sraasto	z3333		21	-	1.1
SwesRr;	13 *1	*:e			ID

tana maa

SdBtag 11140

snHBEta os;

28458

37 JB

REAL STATE

Brim

MSK

*17

Utfi

-J 174 21 27

-3 74 U 14

.5 757 97 13

-14 83 - 05

.« 55 36 1i

JJ 10 li

72 14 48

LT. HARDWARE

tSBUbaon AauiS*

EnasmB MtaA ST I

3145

2391

tas

nso

HSURAIICE

nob

BabaAq

CSu

BgxWnta n&r RHlI

11540 -14

«3J31 H5S 2J4J8B -U

hue -l

5848 «4

777/2 *114

-J

-22

aKTBfflsc a aarTRHyyL eowt

1034	*4	103	30	£2
1.1442*	*3SS	me	81	22
2286	*3	41	u	-
MS	*3	225	S3	25
M	+4	222	VI	10
3350	+10	40	u	10
47	*0	U	-	U
Wl	-u	U	*	00
«UB	-a	7 3	u	23
EEfl	+7	SU	00	10

nn 11330 WK 3215 IS

BRE 1ZJ

3K 4U0

■UcfeRiHP m»

E2	10		RESTAUR/UnsraBS A BREWERIES
ai 41 1	■J Z19	15 10	Ota	UL»	■•J9	ID 6	J1	4 2
010	LB	07	Gtacnms	11 10	♦ 1	75	21	07
nj	OS		SmiEtaM	ID B	* I	6 J	23	4J
			>Tnu«j	(33E	"	it	21	Zi
			SOFTWARE ft COMPUTER StVKB
403	U	12
U		ttS	EtaGtaM	raz	-35	1U	01	■0
03	tl	04	UbpPLC	156	*1	H	10	04
210	70		nr^ra)	3DE.1D	-ai	110	0.1	os
U	U	15	SAP	265	-no	U2	-	00
45 170	24	34 33	Sen ED	1060	+i	43	12	04

S3 - L7

“ “ “ srecsAimBioraaBBAhCE

ItapjStmN

Sand

SwRrR

ntaPSts

-34

1645 2531 47 *192

3Z4 U 25 45 83 U

a “ " »«

BD IJ 14

144 85 67

84 IS 05 314 - 13

273 03 13

13748

1130

160]

1683

*1 SO 1* 11

44 U II U

30 U ■ 23

♦J 24 40 L0

*4 184 22 24

*4 4 1 24 2 4

£4 21 14

BWESTMOT COMPARES

a Otto a« .3

Mm E23B

BB. 18628 -24

support sannees

55 8 4 22

10 - 24

18 - 24

BKKSWG&MACHHBZr

■LB	10B	DJ	14	taOpmA MU&gcaB		-3	20	00	22	LBSURE BnERTAlMBSIT & HOTELS
-2	380 3&1	U	IS	aw	-3	14	Ul	22 10	Ace*	22000	*2.1	70	OI
+2	129 BJ	02 00	30 12	LWt raw	48L1B 24	*J ■J	4.1 U	Oi	U U	Ltfoflte	44S	*2	u	40
-34 -a	81 243	0.1 0.1	24 24	Ml— 1	433 IBIS	410 ♦2	70 47		17 43	UFE ASSURANCE
-3	1U 74	01 00	3.7	scaott* sraras	413 20	■*■,7	24 24	62 12	30	SSrata	0200	-12	641	22
+.1	250				IH			P					100	SK7
+ 7	503			Tatani	301				u		nu	*1	M0	24
		41	20								E71
		0.1	1.1							Pmfcffls	1201
+.1	m	83	20	cniint rune BSUSMS				SenLOelP	724	"

MOO 00	494i»	-40	77		10
Hta	MLS	*0	30	36	03
—ratal BM	4848	-14	94	U	u
^•1 B	IB*. 44	*94	43	01	10
MNH	563	*2	101	150	11
	an	-40	u	-	u
nrrtaiore	3049	-A	149	U	04

BEVB1AGES

&rbaogB

CHEMICALS

Nr Up*

«fe»

BASF

B0C

n» sea

Cknrtife

DBpnMtaH

UGB

7.19

4013

1075

4335

njo

3U2 1344 JM8 66£ 442 3UB 12 7 3 4LB4 5&3S 4438

- 60 19.1 SO

-U 34 H U 41 » U 87 -U U 21 u -J 45 21 S3

♦16 ISO - 05 -1 40 53 73

- 104 53 LO

- 764 214 2.9

MEDIA & PHOTOGRAPHY

saps Ctata

CaumC

FOOD P800UCOB & PROCESSORS

-.1 75 75 52

-a ii ci ia

-.1 385 03 U

- 133 33 DJ

. 60 03 £6

- 145 23 20

*42 1*9 M 12 -LB 23 21 42 874 21 13 U IP 01 4 «l U U *1 293 73 15

UHNM

lflBW

B-"3

aooo

5(8 1395

^44 653 1340 *.l

133

35 -2

80 *< 1« *44

*32

-J

-1

M3 IB

1=1

191

10 1A £4 34 44 S3 24 U 13 14 32 12 43 1.7 46 16 ■J 14 17 OS U 84

THflMHmMMTIOmHBflCES

*3 1064 *A 162 *1 364

-J 27 7 -4 JSJ -.1 84

- 133

-14 83

-U 194

- 5.1

-152 9 4

-64 11.1

+2 714

*>1 aw

*3 4U

♦.1 67

*2 51.7

U2 23

46 13 111 M 14 14

363 -

13 -

14 24 L7 U 09 04 0.1 14 02 26

285 14 265 07 61 U

47 - 84 67

TOBACCO

HtaTN Utt RppHIo* ISA

.824 -2 Ci 117 43

606 -3 4 1 30 66

1035 - U OS 4.1

1/450 -260 75

1847

u u u

Rtolhta

2X9

1234

fMESIRT4PAPB

-UJ 113 *J 9> *2 -.1 *J

*73 *4 *14 H7 -1 55

-14 156

-22 U -14 65

62 U

VI 64

92 13 CJ 41 94 84 02 -

- 10 U - 02 14 35 S3 07 14

93 24 92 BS

SDH

1848

-.4

-X

-.1

-J

£6 05 IS

24 ■ 63

64 03 61

67 04 65

fiAS BEIRBUTIOH

0B.&GAS

BPMKD an

» ' i*

WHmn 3111

moBn JS

4721

SSpHU e«

MW S4ff

MWita nua

Ml 1DZ3B

.1 4j 197 46

■ ill 33 44

♦j U34 IW SO

u « iu a -1 17 03 2J

ms at is

162 U 23 017 AS 14 56! Hi SB 294 84 11 B2 U U

TRANSPORT

BAA

WS1W8

1347

tO 30 578551 -1181

127653 -888

P&O

1944

1023

2221

335

3S 84 24 -I no 16 23 11 ■ 0.1 11 n

17 03 24

-2 65 M 5.1

t J 114 14 U -.1 44 18 14

*64

4.1

WATER

Oaom

129

IJ3

8840

*1 294 1L5 24 - 77 84 ■

^5 83 04 94

aSERALBEHHBS

CttBTBUCTlW&B®1*16

*> 44 93 fll W

ta 32 24 24

£ £ »«

4J IU U U

HP*" “1

55*’ S

SMOtta W

Had

HSUB

DSIMBOTORS

EDE

*40

U - w u u u

mntf

FMPi*

HEALTH

ffiWtA

iMwOAKr

1640

nra

n.w

HUB

H33

678

5129

157

7.75

70S

192 II 2S 61 36 12

n* Si 32 129 02 OX

154 24 20

165 102 65 194 04 U

ISA 92 94

27 i) '4 64 58 T

MOKARMG

MsOssi-U 108112 *40 63

PERS0ML& BOOSBMU) PROOUCTS

Note

Prta ebb U nstaa aptoBsadora iqM by F7S HeoaknL

MbM	a	+0	u	.	03
neraM rr	an	+10	44	-	L2
ra—	0130	-a	3U	ot	34
Rte &C	1107	-A	4J	£0	u
PHAHucamtais
An 4	1311	*0	393	49	12
Saw DUS	zud	+a	167 »	U	10
Mata*	104512	,307	ins	02	ID
ten —A*	aa	■47	62	04	11
ratxtuiO	(101787	■m	I0M		00

..... . i Hpures ve taw on sans

was In index cWuUkm. Staru n not

cm>4 Mm kMgi nw Mp restrtcUan* wttf. tel «t Mp» up nun Mm may Mn IW

Stocks Is Md Mm oe donklW a Eiwi coun- M9.

Tratfso tens 3W jfeftfc man wo to as <tomK9c rartsts an) wnUM tqp Financial Ita* btomittn.

(tavanr daMtebne an taad n aw» hm tor ns TO Eursb ata» tote.

-■- rt

inflows to equity mutual funds, which invest in euro- zone stocks, has been disap- pointing. according to a recent report by Salomon Smith Barney.

December's inflows were at a low of £2bn, compared with a $6.7bn monthly aver- age in 1998.

January's figure was weaker than expected at $3.6bru with the outlook for February's inflows being equally subdued.

The report highlighted a possible supply imbalance in this year’s second quarter,

as ¥34bn new issues were expected to meet with little demand.

The FTSE Eurotop 300 index advanced 6.84 points to 1.239.35. while the FTSE Eurotop 100 Increased 23.70 to 2.859.44.

The FTSE Ebloc index of leading stocks in the euro- zone settled 1.95 points higher at 1,009.77.

BONDS

INTEREST RATE SWAPS

Czedi ft®.

Denrnarti

tei

Hunoanr

Homy

tamafe

Smoen SrttWM Ik

Ante

Anpfltoa (Pem

Drazi (RS)

Cvwto (CS

HeAzi MmPbsdI USA (S)

PacHcMddk Eatt/Abka

Austria IAS

HoagXOflS WKS

kdB m

Nn m m

IMS

IHZS)

(OT

(SS

(WDrt

(ra

(ten) 37JS91 *02«fl 201 - 800

(DM) 7.4® -wm w - as

(DO 321.459 -0J2DQ 282 - 639

(Fond) 30411 -04180 290 - 731

R3CI] 68522 -aoiei 469 - 574

aioftrl 45745 tOLflJ3B 702 - 7ST

(Leu) 14816.48 *376.7200 590 - 705

(Ate 25.4168 -00482 947 - 390

44.4B69 +00188 368-379

69248 -00155 213-363

1.5049 *0.0010 940 - 958

00743 -00026 740 - 746

®01

(5*1

10887 20714 10509 168491

10888

+0.0005 884 - 889 -00725 682 - 745 +00029 499 - 518 -90669 423 - 556 *0.0005 BBS - 890

HMZted

sou® Antes

tend

DAE

EntLntag I

1.71 02 -00156 091 - 112

8.4361 +00036 339 - 383

450405 *00035 25B - 553

978876 *06.1200 200 - 545

4J847 -00032 789 - 905

132.142 -00430 079 - 3B

41373 *0.0019 373 - 373

20356 -00088 338 - 374

4Z515B +0.1B2B 427 - 80S

40829 +Q0O1B 817-811 13838 *00027 B28 - B47

67124 -00350 088 - 100

134409 -30500 343 - B55

38.1139 +60438 511 - 7G6

400941 *0.1438 4S6-415

*60019 977 - «n

360550 7.4389 321000 5 13S0 88680 4JSI2 1465000 3SX819 465403 80520 15969 00786

10917 2.1508 1 8552 106942

10918

1.7312

64408

464015

9862.10

SMS

132.800

4.1488

20537

45.7986

40946

10851

8.7298

135656

36.1790

410901

40250

37.6290	30.1123	-5.1	334019	-40	39.7024	-4.fi
7.4223	7m	-03	1A 377	-A3	7.4607	-04
321.280	3232938	-38	3285618	-33	3430638	-50
241940	2532130	-129	2533027	-124	2736860	-110
fl.5450	35848	-46	86355	-30	8 7030	-20
42490	-	-	-		-
1458000	-	-		-	-	-
24.C7B	-			-		-
42.3345	-	-	-
8.9145	&&9S	-31	89321	-0.1	5.9502	-02
10914	109B4	10	10890	17	10716	1 5
06735	06757	-25	06782	-20	QE893	-22
1.0856	-	-	-	-	-	-
20680	-	-			-
1 6435	10537	-20	16590	-20	10871	-22
1 0.6236	100788	-239	110901	-24.1	130349	*250
1.0957	1.0905	-10	1.0939	-IS	1.1130	-2?
1.7073	1.7127	-10	1.7173	-13	1.7440	-20
8.4220	8.4624	-M	9.4922	-27	8.7993	-43
46.1064	435673	-30	47JS78	-88	537737	-90
974120	1005408	-313	1065401	-34.9	13133.48	-34.0
4J721	-			-
131.700	1310000	31	131.1723	29	1280280	20
4.1256	-	-		-
£0322	30378	-10	20424	-10	20719	-10
424037	42.8952	-137	430466	-9.7	46.7561	-10.0
40714	40973	-42	4.1335	-40	40551	-40
10817	16821	11	10792	10	10816	0.1
6*477	37826	-125	60078	-110	Ml 29	-10.4
134206	-	-				-
36.0020	333628	-83	380457	-50	370420	-40
402152	40.8609	-79	412510	-65	411121	-62
3S750	40051	-2 2	40204	-22	40986	-20

, IMgMjtam Fmtt «J». Ftaai IMfei 501573. French Foe 655857. Geata Itata 135533. MU Rl* 0787584. Ota Ura 193637. Mnatanas Sotar 270J71 tatggm Emm 200*82. Spata Ua i«R BMta MM iital»ta«»taMi«Mta «*» M.

llTOU

Eta. Hd art IMS M knam rata m MM tarn THE MUBJTBG OOSN6 SPOT U F0HMR0 WJE 1

i are moxM atari

EURO-ZONE BONDS

tam-f tod As

£SW

BM AM

Star

BM AC*

USS

EH A*

Tun

EM A*

1 yoai	3.11	314	542	545	100	104	133	506	021	024
2year	3.18	122	5.43	546	100	1.88	506	5J9	006	009
3 year	304	308	5.46	500	203	211	508	671	009	002
* year	154	308	546	500	222	200	5.76	5.79	008	0.89
5 year	173	177	144	548	240	248	502	505	1.14	1.17
8 year	191	305	143	5.47	20B	264	507	500	140	143
/year	408	4.12	5.44	548	2.72	200	502	695	103	106
a year	403	427	545	5.49	208	296	506	509	101	104
9 year	406	440	546	500	103	111	640	603	106	109
10 year	4.45	4.49	548	500	117	325	603	606	209	212
12 year	400	404	5.47	502	108	149	6.11	614	230	224
15 year	400	404 '	148	503	164	174	618	621	255	260
20 year	5.02	506	5.49	504	190	400	625	628	273	278
25 year	115	5.19	5.48	504	4.00	4.10	80S	628	202	207
30 year	121	525	5.47	504	4.08	4.19	625	628	245	291

BM am ufc rata as at Eton of London Mateo. US E b qutod annual monay actiaVXO tests a^toa 3 morta luor. £ and van quatad on a taM-anata acata/385 baato agate B moan ita. (MM ftw «m <w amta Mntf DM teto state B rara* Eutafttoor atti Ut KMfdu oi w 1 1Bs raa mm M wnM zguM 3 raanm BrtwAiuti SiuwHaagUMmiiO.

Euro band yfefd cunre

Euro aganst tta doflar

Atfra*	1053	-2	31	12	70
5«a Tree	1306	-5	44	12	47
UtataMte	ii n	-J	52	15	so
nminfc	1154	-1	£L3	10	54

Pa cent				SperC
50				' 1 is
50	/ ^eS5'			1.1*
45				1.14
4.o Jr	r	1	s.	1.12
15 —J	— Mar 9 1999		zr	T.10

3.0 V> . - .				^ .1.08
1 3 57 10 15 20 30 Un soar*. Bunam OnffTMnmMi	Jon	1999	Mar

Mta 09	Red data	Coupo	S & P Rating	BM price	Bid ytad	tay-i diga yid	Mtffe Chge YW	Sprt « Sorts
■ sovaefins UK	017QT	4050	AAA	101007	304	+009	+0.10	+0.13
Denmark	01/02	4.750	AA+	103069	306	+004	+0.10	+0.15
Sweden	02/01	5000	AA+	103.154	126	+602	+0.10	+615
Greece	11/08	6750	BBS	111745	408	+0.03	+618	+683
w sunuMmuiLS ATS 1M17	5500	AAA	106051	402	+604	+002	+004
BB-	04AM	6000	AAA	105085	407	+604	+005	+626
Euroftra	12/09	502S	AAA	107042	4.71	+605	+009	+008
Wgrid Bank	044)5	7.125	AAA	117.038	192	+003	♦611	+631
m unures EOF	10/03	3.750	nft	100057	152	+004	+005	♦0.19
TffCO	tram	4.750	AA	101391	181	-606	+601	+648
Oitarac Hydro	03/08	6375	A+	104030	401	+004	+624	+000
Honk Hydro	nun	7050	A	101055	300	-0.03	+606	♦658
■ HWMCIALS Bad Wirtl	02/10	6375	AAA	106093	4.67	+607	+0.32	+047
0KB	09*17	6750	AAA	110004	401	+0.03	+000	+0.43
Credit Load	044)8	6250	AA+	104046	409	*604	+623	+658
Abbey Nta	01 AH	5000	AA-	100.476	404	+605	+008	+001
■ MDUSTRULS UMfewr	iani	5125	AAA	103039	149	+002	+009	+638
McDntads	03/06	5125	AA	104.134	406	+604	+625	+655
Rife Morris	06/08	5625	A	103061	5.13	+0.04	+000	+1.12
BAT H Rn	07/06	5376	A-	102164	501	+003	+604	+106
■ PHHDBR0E Rhein Hype	12/01	65m	n/a	106540	303	-003	+604	+002
Eunhypo AG	01/04	6000	n/e	106719	169	-001	+0.16	+002
Bayer VErcftra	0106	6000	n/a	111.460	405	+000	+0 27	*020
Depta	07/08	4.750	n/a	102.802	407	+001	+009	+006
■ KOH TB00
Sedan	M07	10.125	B+	1T50H)	622	-O0I	-214	+204
CdtTdean	11/07	8075	n/a	106233	707	+005	+003	+199
bnpress Mettl	D5OT	9.575	B	116750	743	+008	-105	+155
Rainy Cowreau	07JO5	IQ 000	B+	97000	1804	+611	-671	+603

StalM Start rate

Sara; knsacta DntaT Mtnmarai

These securities have not been and will not bo registered under the US Securities Act of 1933. All o /these securities having been sold, this announcement appears as a matter of record only

The Global Offering ot shares In Benca NaiiorudB del Lavoro has been promoted by the Italian Government through the Italian Treasury

January 1999

€ 2,655,553,875

j£)BNL

Banca Nazionale del Lavoro

1,115,135,192 Ordinary Shares

JOINT GLOBAL COORDINATORS

Banca Nazionale del Lavoro S.pJL

MEDIOBANCA Banca di Credfto Finanziario S.pJL

Schraders

Italian Public Offering

661 ,774,000 Shares

Banca Nazionale del Lavoro S.pJV, MEDIOBANCA

Banca di Credito Finanziario S.pA.

Banca Commerciale ttaliana S.pA

Banca di Roma S.pA

Caboto Sim S.pA (Gruppo Intosa)

UniCredito Italiano

San Paolo-1 Ml S.pA

Banca Fideuram S.pA

Banca Monte del Paschi di Siena S.pA

Banca Mediolanum S.pA

Italian Institutional Offering

174,936,192 Shares

MEDIOBANCA

Banca di Credito Finanziario S.pA.

Banca Nazionale def Lavoro S.pA Schraders

J.P. Morgan Securities Ltd.

Albertini & Co. SIM

Banca Commerciale ttaliana S.pA

Banca di Roma S.pA

Caboto Sim S.pA (Gruppo Intesa)

Euromobiiiare S.I.M.

AFV-Milla & Co. SIM Rasfin SIM S.pA.

UniCredito Italiano

International Institutional Offering 225,525,000 Shares

Schraders

Warburg Dillon Read

J.P. Morgan Securities Ltd.

BBV Interactivos

BT Alex. Brown International

Cazenove & Co.

Fox-Pitt, Kelton

ABN AMRO Rothschild

CAJB Investment Bank

Dresdner Kleinwort Benson

MEDIOBANCA - Banca df Credito Finanziario S.p A

U.S. Institutional Offering 52,900,000 Shares Schraders Lehman Brothers

J.P. Morgan & Co.

BT Alex Brown Salomon Smith Barney

3le

ate. Since '6s been 3f which

e profes. her shift

Is going Vovotny, does not or a pro- present next io

initially :*out 400 eactioti

bng a

mil. By itribute in.

rts are armed ubstan- time or

et was 1.9 per : prod- and is it next

:his is ;I and ere is ocure- s the ed to omes- light next

FINANCIAL times

•V' -.V: .■'fV''

WHDKESDAY MARCH:lCf i9^9 .J*

PDVSA issue faces difficult market

INTERNATIONAL CAPITAL MARKETS

Greenspan comments buoy Treasuries

fhi»e'

BENCHMARK BONDS

By Arkady Ostrovsky and Khozon Merchant in London and John Latoate In New York

By Raymond Colilt ki Caracas

Petrbleos de Venezuela (PDVSA). tbe state oil com- pany that is seeking to raise $lbn in tbe international capital markets aver the □ext few weeks, is expected to face tough market condi- tions due to Venezuela’s sov- ereign risk and the depressed oil price.

"I'm sure PDVSA can place the paper but it will be at a higher cost than it did last year." says Franklin San tare Hi. senior analyst with Duff and Phelps, the credit rating firm.

PDVSA's new board of directors, appointed at the beginning of last month, approved a Si bn bond issue, but officials say the amount is only half its total borrow- ing requirements, and are hoping a second issue will be scheduled if the first is well received by the market

PDV Finance, an offshore investment vehicle, last May issued a total of Si.Sbn in five tranches priced between 88 and 163 basis points over US Treasuries with maturi- , ties between five and 30 1 years. These were backed by PDVSA's expected payments 1 from clients. j

DCR last December down- graded PDV Finance's notes from A to A-. after also downgrading the country's long-term foreign currency debt rating from BB- to B-*-.

It argued that "tbe struc- ture of the PDVSA Finance transaction mitigated but did not completely eliminate sovereign risk.”

As the country faced a severe shortage of foreign currency, the likelihood of sovereign interference with these types of transactions would increase, it said.

Soothing comments made by Alan Greenspan, chairman of the Federal Reserve, prompted the US bond mar- ket to edge higher yesterday, as European bond markets continued to sell off.

Mr Greenspan said that despite strong US economic growth and low unemploy- ment "there have been no obvious signs of emerging inflationary pressures”.

Traders interpreted his words as a sign that the Fed might be less keen to cut interest rates than feared.

Mr Greenspan also said productivity gains were expected to continue. His comments came as new fig- ures on productivity were released, showing that in the fourth quarter of 1998 pro- ductivity was revised to a 4.6 per cent rise from the previ- ously reported 3.7 per cent

The tight labour market could prompt companies to spend more on technology and less on labour, analysts said.

US Treasuries edged higher at midday. The 30- year benchmark band had gained & to 953 in early afternoon trading, sending the yield to 5J5S2 per cent Tbe 10-year note was up 3 at 96§. yielding 5-227 per cent and the two-year note was £ higher at 99g, yielding 5X84 per cent

European bond markets however ended lower yester- day, lacking encouragement from the European Central Bank. The spread between German bunds and US Trea- suries narrowed to 115 basis points during the day, hav-

ing peaked at 140 basis points few weeks ago.

The UK gilt market weak- ened in response to the Bud- get, which, analysts say, reduces chances of an inter- est rate cut

Kevin Adams of Barclays Capital, said: “Gordon Brown spent most of the budget giving away money, which means consumer spending is likely to be resil- ient and business confidence could go up." He said the monetary policy committee would fmd it harder to cut rates in this environment

This and the reduction in

borrowing requirement which could translate into the reduction of debt issu- ance prompted investors to sell off a± the short and long end of the gQt market The benchmark 10-year gOt June, future fell 0.74 to 115.63.

Japanese government bonds continued to weaken after their recent rally, evi- dence of nervousness ahead of a crucial Rank of Japan's monetary policy committee meeting cm Friday.

Ten-year JGB futures weakened 51 basis points in Tokyo and marginally less in London.

Rate v sparks JGB v

rise in

By Gasan Tfftt and Naoko Kakamae in Tokyo

Tepco launches €750m five-year bond

NEW ISSUES

By Khazem Merchant

Tokyo Electric Power, the world's largest privately owned electric power com- pany. yesterday became the first Japanese corporate to launch a euro-denominated bond. Tepco's offering con- tinues the recent rehabilita- tion of Japanese credits.

Investor concerns over the Japanese economy, which is in recession, have largely shut out domestic corporates from the debt markets. But sentiment towards Japan has improved, with the government tackling the troubled banking sector and addressing an anaemic economy.

In the past two weeks, sev- eral government agencies, such as Japan Export Import Bank, have successfully tapped tbe debt market.

Tbe five-year €750m issue, which was priced to yield 56 basis points over the 2004 OAT and tightened by 3 basis points, is the largest ever issue by Tepco in a European currency.

Paribas, joint lead man- ager with Industrial Bank of

BENCHMARK GOVERNMENT BONDS

Hrf an EJj; thg '.'A 05 Mown Yen to 9 ate CCU3J1 toe rad ■,*’£ y--J3 cag yM cftfi

512

5 £9 *0i5

3.19 *004

424 -0XU

3.23 *008

433 -006

524 *001

532 -001

350 -004

453 *OB4

306

435 *006

306 -0 02 382 *004

423 *007

5.12 -005

310 *003

393 *006

4 II *007 510 *005

036 -000

539 -004

-050 -5.18

-0.17 -435

324 *001

428 *005

*000 -140

♦025 -039

321 *002

3S8 *003

4 JO *004 527 +005

+012 -1J0

+0.16 -1.15

*027 —0.97

*034 -0.48

026 *006 032 *005

1.71 +007

262 *008 312 *004

422 «0jQ4

-0 35 -029

-0.54 -025

-043 +007

-035 *012

+0.11 -001 ♦027 -<1«

571 *004

5.96 *0 03

*005 -142

*028 -OJffl

408

505 *006

*01/ *008 *032 -02b

300 *001

430 *093

302 -002

459 *007

-006 -108 *028 -002 *003 -106

*059 -050

316 *0.02

449 *007

♦004 -134

*034 -033

147 *006

2.19 -OCO

*005 -0-11

-018 -008

500 *005

4 79 *006

485 +006

4.54 *007

5.11 -flJE 5.78 -004

524 -005

509 -001

+037 -161

*044 -129

♦027 -133

*032 —130

*027 -047

*028 -09

*021 -050

♦013 -040

London ctafa) * Mmr Tort n)U-<liy SmHi

•Mb lot* *arW waMbiWnutoa 4 tastv Y tabs «mi tar Mr oMt 1 cam math Hr nmadgm.

iHgnUmffi

Ung a> a ils vm

10 YEAR BENCHMARK SPREADS

Spread Spread

tofi	BU VMd	as Etna	w T-amfc		ad yield	*3 Etna	« T-amds
tohaBa	5.70	♦107	*046	MeCWrtan*	406	*013	-008
Austria	4.41	+028	-0.83	New Zealand	505	+ 102	♦071
Batgkmi	4.32	♦0.19	-002	Norway	505	*002	-019
Canada	533	+■130	*009	Portugal	4.37	+004	-087
Deranarti	400	+0.37	-0.74	Span	4.42	*009	-082
FWand	434	+001	-0.90	Swafai	4.52	*039	-0.72
Franco	4.18	*005	-106	Sfatzariand	2.37	-1.76	-207
Germany	4.13	-	-1.11	UK	4.75	+062	-049
aeeee	8.12	+109	*0.68	US	504	+1.11	—
Inland	433	*020	-001	Oxsw. nuacm faadFT iteuujaai
Oil	431	+018	-093	Lendon cfatoig. * new Vote ctasM
Jip»	1.76	-237	-3.4B	junolnd ytte l»rfc

EMERGING MARKET BONDS

Mar9 ■ EUROPE

\| ffa	CneBa	02AJ2	7000	888-
MR 1 r 2 r	Prtmfl	07/04	7 12S	BB8-
Russia	06/07	10000	n/a
3r	■ LATH AMBflCA
sa	Aigertta	09/77	9.750	BB
Sol	Bram	05/27	10.135	B+
SKl	1 Heda	05/28	11300	88
1 n		-
2 R	■ ASIA
3n	CMn	078E	7.750	888*
Gel	MfapMK	10/16	6750	BB*-
Kru	TlBfertd	04/07	7750	B8B-
to	■ AFMCA/MDDI0 EAST
	Lebanon	07/00	9.125	ffi-
	SnATi AMca	10AJ6	B375	BB*
	Tiefay	09417	10000	B
	■ BRADY BOMBS
	Argentina	03/23	5.750	BB
	Brad	M714	5.000	B*>
	Mexico	12719	6050	B8
	Venezuela	03/20	6750	B*

tottn etostag. toah USt 9x01 tPHTMto

BU	BM	Days ChQB	Mai's digs	Sprd »
price	new	fal	riri	US
93 64 50	643	*657	+001	*433
1053071	692	-005	-008	+0.76
230300	47 84	-0.19	♦7.11	+4203
820600	1107	-0.02	+0.14	+B41
66.0000	15 45	-030	-on	+909
107 3000	1067	-an	-042	+613
990500	7.78	*001	*004	+259
920481	970	-0.05	+0.12	+4.34
961000	700	*604	-0.16	+2G9
1015211	633	-0.18	♦0.19	+109
5B.5573		-007	-0.70	*337
900380	11 71	-0.08	-033	+800
567500	908	-004	-003	+3.77
59 3750	>4 09	-003	-008	+8.78
765000	671	-005	-Oil	+330
643750	11.18	-004	-0.17	+675
	Simk xxmdfa OBtoTT tofaniJkn

Japan and WestLB. said the borrower was able to make cost savings over compara- ble domestically generated funding.

The Asian theme contin- ued with Hutchison Ports issuing a 15-year £3 25m bond, just a week after a successful debut euro-de- nominated issue by its par- ent. the Hong Kong-based conglomerate Hutchison Whampoa.

Hutchison Ports' key asset is the port of Felixstowe, the largest container port in the UK and the fourth largest in Europe. Its ports, which include Thamesport and Harwich, handle some 46 per cent of the UK's container traffic.

Bankers said Hutchison Ports opted for a sterling issue - instead of a euro issue like its parent - because it was a UK-based business with sterling fund- ing requirements.

The borrower was also keen to issue a longer-dated bond and accordingly pro- voked strong responses from its target investors - pension funds and insurance houses.

The bond was priced to

New international bond issues

■ us dollars

KIW international Franca

■ EUROSW

Ford Motor Credit Co(T) Lander No Six Tokyo Bactrtc Power Coffl Gtebaldrtve. Sn B. Snfftt Parmalat Finance Com Suncorp Metway*

PlreB and C Luwfl intasa Preferred IlfaJ HypoVaramabankJhJ Aak-CgerQ

Rep ol the PWBpptneaOq

■ STERLING Hutchison Pwta pic Abbey NaH Trey Swvreesfm)

■ SWISS FRANCS BNG

Amount	Coupon
m.	%
TOO	zero
Ibn	Gis)
750	405
750	4.00
490.75	toll
250	530
200	(Wri
150	6125
125	640(q)
100	4025
TOO	7375
50	BUOts)
325	0.75W
50	5375
150	200

zero 95.073 Mar 2000 005

Haaxa fnfemad&nal

lap 99/402 9B0B7R 10000 983 7 R 09 071 R 9S5GR 100.00 67.7DR 102430 100JJ75R

Jul 2004 Mar 2009 Mar 2004 Jun 2008 Mar 2009 Now 2001 Apr 2009 undated Feb 2009 Apr 20C5 Sep 2004

/afflVdiSf!

+27SJ*JanCS;

•tSyariS?

+e$&UonC3! i TpSfury^

CSFB00hfH2T4M«iffl ABM'Cmmrz/TIG/VVeaiLB Q3JVPar2uB/WestUB Deutsche Sank Meni3 Lynch

CnawflUartaurg DR MbrSa/RasftaXMCredltt Goldman Sachs 8GL

Asa-Cger

Deu3che/JPM/Warbuig

REG OS Gfcfaai Markets

2.00 10120 Dec 2003 2430

tYarturg QEan Read

Final tern®. non-calaWe unless stated. YtaW spread (ever relevant government bend) as Scinch suppled Sy teas manager. 5 Floating -rate note, ft fixed re-ofler price; fees shown at re-effer level, of Pnoea away 47-Mtn arer She STAN, b) Secured on German retaS auto loans originated by Cologne branch at FCE Bank PU. a eubsesmy ct Fc n Meter Cred! Co. A* fila 69 yre. blj 1-mth Eifftoor +2-ibp. b2) Junior class: £2tL5m. 5.1 yrS, 1-ME *0Gbp, per. e) 3-nnh Sirtbcr +3Qbp. d) CaSabte from 7/10*00 a higher of par of formula, e) Spread refcnes to German govt bends irSsss steted. f) Spread re French gevr bonds, g) caBabie rei coupon dates from 30/3/04 at par. h) Fungs** wtth CAOOn. Plus 21 days accrued 'j Rederepwn finked to any JaJMn DJ Euro Sloxx 50 index, k) €300m launched 4/3/99 was increased to CSSCtr. !} Lncsg is! couscn. ra) Pjrsfcte «Ab 5300m. Pius 79 days accrued. re Fungible with SFrSOCm. Plus 140 days accrued. sp Cuaswty. si Shcn us coupon.

yield 193 basis points over the relevant gilt, tightening from a level of 200 basis points indicated during a roadshow in Scotland and London- The bond narrowed by 2 basis points.

Ford, the US carmaker launched its debut euro bond, with a €lbn offering maturing over 5‘: years.

Bankers say the Ford issue, wbich is expected to be priced today at 47-46 basis points over the French BTAN, could signal a small rally in euro-denomi- nated issuance by US borrowers.

For US borrowers, the euro market has been rela- tively expensive to access.

But the situation has eased in recent days as euro swap spreads - the rate at which ftrari rate money is swapped for floating rate money - have widened while dollar spreads have remained sta- ble, correcting an imbalance that has dissuaded US bor- rowers from issuing in euros.

Yields oh long-term Japanese government bonds yesterday rose sharply after a warning from tbe Bank , of Japan governor that he expected long-term interest rates to rise again soon.

Government suggestions of an imminent tightening of bond trading regulations also damped the bond mar- ket, and the yield on the benchmark 10-year govern- ment bond climbed 8 basis points to 1-7 per cent.

Comments made in parlia- ment by Masaru Hayami. Rank of Japan governor, were interpreted as a sign that be did not expect the Rani; to take further radical steps to ease monetary pol- icy when its policy board meets on Friday.

However. economists pointed out that the Bank, was still Holding intensive internal discussions about policy ahead of Friday's meeting. And although Mr Hayami has ruled out any direct underwriting of JGB&, some officials expect that some less drastic measures may still be adopted in the coining weeks.

In particular, Friday’s meeting is likely to consider introducing interest rate tar- gets for three-month money or relaxing rules on bank reserve requirements.

Yoshito Sakakibara, econo- mist at Goldman Sachs, said; “I think Mr Hayami is sig- nalling that the Bank remains against underwrit- ing JGBs.”

But the recent surge in long-term interest rates has been welcomed fay some life insurance companies, which

as a sector, control some YiSO.OQObn of assefer.;

“We have teen increasing our duration in Japanese: bonds since longterm yfcSds have gone up,” said Takashl Kawashima, manager feittce investment planning deport ■ meat at Dai-ichi Mutual. Japan's second laxg^t lSg^ insurer.

“As a life insurance ccan-"‘ pany with fixed liabilities, higher long-term interest, rates are beneficial “to usin/ the medium- to long-run. As. ; a result, we have teen .hay- ing more 10-year government bonds. And we wilL to 'cohr' tinue to do so, if loog-term rates continue ' to trend' upwards.” . .j?'"1

Bond yields were yester- day also dented as tradterif warned that the Japan Secu- rities Dealers Association,- : the industry watchdog, appeared poised to mmpose a rule requiring ail trades td be conducted within 2 per cent of the market price.

The JSDA, which abol- ished the rule hr December,- . said that nothing ted tieen- deddeti. However, in recent weeks the JSDA has come, under pressure to reimpose the rule since there ted been a dramatic increase in the . practice of “price adjust- ment". or conducting bond trades at artificial prices to conceal losses.

This prompted foreign ait-, icism that the JSDA was in effect encouraging trading practices that did not meet global compliance standards. _• And senior Finance Ministry •" officials have consequently teen pressing the JSDA to reimpose some form of con- trols to boost Tokyo's repu- tation as a global financial centre.

BOND FUTURES AND OPTIONS

Ranee

US CORPORATE BONDS

INTERNATIONAL BONDS

Davs Mtfts Serf

DqfE to-4 Spread

■ wonauu. euro bow Rimes wtti ci 00,000

open Seflpra QBnge tflgti Lot* Est Wl Open ml Mar 11005 109.77 -028 11036 10141 37206 71539

LONG 1HW EURO BOMB OFITOHS (MATT)

Strike	—	— CALLS -	-	—	— puts —
Price	to	Jai	Sep	to	Jun	Sep
97	D02	.	(LIB	338	.	333
»	-	-	009	437	-	4.43
99		-	0.04	637	-	537
100	-	-	an	687	-	637

Ert «<1 Ud. CM 10M Pis D . Mu djfs np«* W. CM 127B PIS 1.765

Gemrany

■ NOTOUIL GBWAN Bum Rnuns (Dm 01B50500 100BIS Of100%

Open	Sett price	Dongs		Ufa	EaL ml	Open wl
11339	11303	-007	11304	11207	806083	607,450
.GERMAN BUND (B0BL) HJTOHB	(DIB) DM250000 100thaoMDO%
Open	Sea price	Ctrange	High	Low	ESL id	Open ML
10649	10640	-0.02	10800	10622	202009	220,520

Mar 8	Bed (MB	CU*D	S8 P RsSng	63 prise	& yttU	caje 1M	c&ge yU	V tots
■ onuis to Bel	07.02	735	AA-	1043391	5 SZ	-002	*037	+500
MY Tel	08/25	700	A+	9651B2	7.12	-007	+0.18	+153
CWE	0508	600	888	1115498	632	-003	*034	♦104
■ TKMNUIX
GECC	05/07	675	MU	117.1781	605	-004	+027	+677
Banc One	0802	735	A	1019436	5J4	-0X8	+032	♦504
CNARa	01/18	695	A-	320926	706	-004	*035	+207
■ MDBSTHIAI0 riMX Tech	0409	635	B88+	1001229	557	-006	-0.15	♦100
WMSt	0502	675	M	103.4827	653	-OQ3	+048	+653
Dayton Hud	08/21	970	A-	1315260	690	-004	+029	+131
■ Manes FHLMC	0407	7.14	m	10634C3	683	-003	+028	+005
SLMA	0300	750	m	102.1038	=30	-001	*0.13	+672
FNMA	02718	695	m	1367880	616	-002	+024	+007
FH3	0606	805	m	1181603	575	-are	+023	♦647
Stone com	0201	908	B	1017506	000
AKSB	1201	613	B8-	HM5DOO	000	-	-	-
FacaRa	0804	1075	8-	840000	000	—	-	—

■ mrmuM. lfb swap nmjBes lfht svt 4 j% DMfflojoo pants m 100%

Open Sen price donga low ES- Wl Open ml

Mar 101.15 -044 0 047

■ MITIOHAI. LFB SWAP RHWES BJFFET lOy 4J% DM250.PO0 ports lit 100%

Open Sea price Change Hffi Low EsL vtf Opm hit Mar 10029 -032 0 54S

Man traded an APT M Open ton! Rgx. n fer prarinue Sf-

f watStsM 1 ftxrt sdra- Mi amiMui t

Sxinr raraom DaMT Mmalign.

US INTEREST RATES

Latest Ttasur Bffls as) Bond Wate

One nena - Tm tear

Rtmaiata 1\ Trie menu - Wreejear

BmbrkaanM 6h Dnenofli 481 ntajear

FwUnb^. 44» a rarfh 470 10-jra

WAnta at mnawlm - One jer 4.79 30-y™

itoiW* seme HanOn OMIT tAmdra

SBndu a Poorti amga: iieidc tnctf met MahnNUnelM test

■ HOTOUL ITAUAM GOVT. BOM) (BIT) FUTURES 0FFQ* lira 2000 1001HS t» 100%

-ton Spain ■ Mono	Open <1250 NALSMKSH	Sen price 11216 B0NDFUTW	Change ■029 ■SJMEFfi	Hgh 11271 6100000	Low 11109
	Open	Sett (Mas	Change	Hfltt	Low
to	11555	11619	-038	11684	116®
Jun	9731	9686	-	9731	9731

UK BONDS

FTSE Actuaries Government Securities

UK indices

■ mmOttftL 51BBB.T HJTUBE5 (UITU £100,000 IQOths nl Ittm

Open SeOprtR Ctrange Wtfi Law

Mar 10705 -019

Jim 10705 -019

■ mmowu- UK GILT FUTURES (UFffr n 00, D00 IQQttia d 10OT.

Open Owe Change Hgh Low

to 11554 115.08 -008 115SB 11010

Jun 11650 11503 -a74 11608 115A0

- UffE Umg tea Med cn APT. 41 Open kferes Dga. n fer pranas dq.

■ UMG BLT FUTURES OPTIONS (UFFQ T1 00,000 lOOths a ( 100%

EaL «1 Open n. Q 63

9 0

1 up is s n»n<i6)

2 5-10 para pi)

3 10-15 ¥*« (7)

4 5-15 (ram (19

5 Orar 15 jtism (4) 8 hedBamtela (4)

7 M Mdcs 142)

Tub to9	Day's chge %	fcaued ntuest	nl aifi ltd	Tea Renin	Oucttfcn Yean YleU	% Wgtt	Max-Mad	Tub to 9	Oefe digs %	Accrued Merest	»«l rid	Total ' % - . Ream UfagM'
1267S	-614	106	1.79	120612	231	435	3437	1	Up to 5 pare (2)	22402	+6®	213	000	116707 1500
16805	-039	2B9	10E	131641	507	454	2938	2	Onr 5 yeerafflt	25704	*001	1.10	2.15	1401.14 8S0D .
1822S	-056	252	134	142751	855	4.79	13-48	3	5-15 years (51	240.71	*601	007	203	130306 4271
17274	-OM	27B	1.14	1348.10	674	402	4202	4	Onr 15 yean (4)	27307	+0.01	133	2.29	149103 4230
22551	-0.80	2.68	123	154137	11.82	4. 78	22.05	5	Al state (Iff	25101	*601	137	1.79	138805 10000
31 058	-007	309	107	100831	2679	406	675
16300	-642	249	150	133651	643	401	100.00

EsL m Open U. 2383 8813

43428 73380

Mar 0	to 8	Yr ago
4.88	401	619
479	4.73	602
4.78	471	508
478	4.71	508

fiaUMtoea to 9 Mar 8 fr ego

— - MaSon UK —

4^ 4 73 tffi tnWt 4-“

Jra MeHlSyra 479

4JH S S "»*** 486

: Mate bvioviV hkp in aoo iw. t vmm. jta Y«r o ds*.

406 402 010

479 4.72 509

486 402 010

Mar 9	Dur yre	IhrO	Yr ago
3.16	629	616	352
2®	16®	208	115
2.14	958	214	330
204	1701	204	613
2.12	11.73	212	616

— MUan K— •

Mar 8 Pur yra to 8 Yr ago

137 300 206 . 7.73

108 1309 108 2»

108 072 107 209

108 17.10 108 206

100 11.85 100 204 -

Strike Price	Jin	- CAUS - Sep	Jm	Sep
11500	109	253	136	1.®
1TS0	150	227	147	2.14
116®	135	203	1.72	240
11650	1.13	101	2®	258
117®	004	150	231	207
11750	677	<42	254	629

FT Ftad Interest Indices

He 9 tot u»5 to< Bata it aga Njpf imr

Coat Sacs. (TO 11200 11303 113.18 11201 11225 10302 117.17 9301

e fke nwrae ua im « imm* not * *x imobs. a— i saanta rag* atm rate fate 100: BaaaM SeoAka 15/10/81 and Brad Una 19HL SE adMg axteas rmaed 1974

Uar9 Mat 8 to5 to < ttm 3 ft ay Mgp*

brat Secs. (W 11200 11303 HUB 11201 11225 10192 117.17 9301 Rod Heed 153.41 15305 15407 15307 153.76 199m 15*« 11502

* nw Mtefaea i" ^ ai**kgt 11740 f*®* 44 « ««■ to te own isae (summu ra saa onnsi

UK GILTS PRICES

ECL m W CM* 302 Pte 55 Pmtaoi <Wt dfan U, Ctea 8554 to 77B2

-S2*nak_

Hjfti tom

_ M*R* . rsgh um

1 US IREAaiRV BONO FUTURES CT1) 9106000 32rttec4 100%

	Open	Latssf	Change	High	Low	E St ML	Open ML
Mar	120-28	.120-17	-0-10	121-05	120-08	14.149	125.066
Jun	120-13	-112-01	-0-10	120-22	119-20	178055	560087
Sep	119-21	114-23	-6-06	110-23	(19-21	18	14084
Japan
■ NOTIONAL UMG THU) JAPANESE GOVT. BOND FUTURES (LBTQ nlttn lOOto* ct 100%
	Open	Sett price	Ctaga	rajn	Low	EBL M8	Open M.
Mat	13256	13255		13208	13253	1035	ida
Jun 13155 13131 Euro ■ C BOND FUTURES (MAH) €100000	13106	131.17	2937	Oh
	Open	Seltim	Orange	Hgh	LOW	ESL WL	Open tot
Mar	108 70	10554	-204	10670	10670	2	144

SMts“fUia> via to tex)

Tra»R«IWe19n — - -10000000 —

facblzW 1999 1221 533 100J9B1 -0212

Tieaaio>iixi99l Idas 5.13 1010143 -0043

TMtefipelSOB 507 405 HB47J7 -0138

Cte*10>«peiaa B0O 406 1DL54S6 -0442

T««» 13pc TOO —

Hen fae 2000 — TaungRaBTOOt Thus lOpc 2001 cam Bijpcani — Ctt*rMiK2an_

fate 7|pc 2001

E»dii?sciwe-2_ CoW IQpc 200? -

oanUAczam.

1«aapc2D03^.

TrM1fac2003_

tn*i 13Vpc TOO-

501 1020913 -0400 4J» IKL7943 -0400

500 1HU308 -0677 499 1040681 -.1098

- 1007125 +0111 507 1091000 -1191 50« UB05H) -.1191 510 1103490 -.1181 4» 104*140 -.1935 499 1 DO 0000 __

409 1140030 -2G96 401 1061575 -0413 5*0 IU2B10 -0686

501 1140890 -JOB 4S3 1112*00 -JB06

U» 1170230 -388 W 1110025 -3097 493120 1401 si -J537 405 111J126 -0B77

EnA ID12flc2005 — f note I2VPC 20B3-S—

Tieas B4pe 2005.

ctx» BJipcans — f

liESiltoTOOG

Ti«Boc2aH-6

Tros7>2PC200B

Irasil^oe 2003-7 -* rraaaaijjicai07 —

tios Ttioeamr

Traas ijrijtc 2WH-8 -f

TraaaBncJBB

Traumas

Tree 6^2010

Cara SpcLn 2011

Uses 9dc 2012

Tiee*5to2D09-T2-.

imspcana

Iraaa 7 1#c 2012-15-

801 401 1310069 951 432 131 <421 1 704 403 1310061 7.46 487 130.7359 656 4X71178561* 701 505 1094434 54? 406 1157744 ft 51 435 1214820 503 406 1344569 619 401 >17.1339 976 474 1360520 Bao 4 75 1J209S2 632 473 1260772 527 <04 109.1663 551 474 1113273 549 479 1380969 640 402 1467213 514 4561070091a] 502 401 1320257 6*9 407 127.1697

13546 12450 13555 12740 12531 11305 13621 12309 122.40 110.47

111.73 10496 12102 10903 12626 11901 isaee ns as 12255 10902 14251 13348 13652 123*5 13201 11557 11407 9935 11678 10242 14531 17722 ]

147.74 128 » 11228 66*8 ' 13964 11950 13156 11594

mtaHUmt »

itoc-w

2«®e'0i J7W

2*apcin 1780)

4to'04 J135 BJ

aoc UG _ — £63

21s* V9 1780)

?lS*'ll (74 R

2IS*‘13 (892)

2*2f* 16 (61 6)

2*s* ■as «in

ZljpcW 497.71

4**K K> — — (1J5.1)

196.4197 -0355 2025277 -0385 3043404 -0009 1320221 -03*5 <330050 +0049 7145088 *0171. 2275211 +0050 1010393 +0111 2115326 +0140 2114864 -0136 1 S3 0750 +0500 1920981 -0934.

19618 .1BM7- 208 « <19689 20703-19448 13439 tS38 23605 26BL33 ■ 21601 19UB 23617 raw 18318 16504 214.49 '.irifB 21303 17417 - 18507 14639 19475-14403

lira M mted adUon <* tu s% wi RH* teera *o> m ban fa UMte 0i 9 teht pAir» aan eluted « iteai* rateatig M nn b UM h Mte < to* 3945. m h, lass- .«ja« MW jte?

We want your business.

1to8pc3n5 695 477 1367586

TrwsSVjean? 501 473 1480742-

Enb UpE 2013-17 — i 602 4 66 1765B19

Tnas6pc202l 5S5 4 74 l« 1972-

T« Ope 3028 403 4{2 injIB-

14412 <22.40 .15816 13137 18300 H5&2B 15321 12B2B 131.(7 I0SLM

Otter fixed Interest

-1W8_ to* fa Bad

HnrtalUBaiTMi

Ttofl^peZDOa 605 4.77 107202* -324a 11621 10508 Ctefat4K — 582

T—a I1i*pca(n-4HUB 612 1120630 -1567 11390 11060 «-<-_, juT "I 4ja TlwalfaClDM i 913 403 1229681 -JSB1 13S55 117* _ VZ

SSS&S'lsf V3 483 ,a»W -«7 12635 11736 ZJZdZvn* ns

flM»as31apc 1869-4 _ 183 429 96350? -,14S7 96* 81 SJ 4

— 775 4* 12U4S0 --4,« '»« HLS3 1na* 530

IwMacaOOa 614 4.74 I Q9J997 -3835 11328 10286 Qm*2>jp6 L74

Com S’jpc 2005 _ — 70S 488 1230039 -.4254 12615 11784 Tnrai Zljpc — 403

79JB76 -0189 72-1244 - 5012 644244 -0012 31.7330 -M2 527326 -0422 567450 -3294

*. to m rafae a BH*nteanci on ^<r* E «— mn usra m & oraq mdpnra « dm

cdcMd in H38G Brad Horn ten stobfls mo. 4 mosm to

151.17 (ELM De»(M«r 2009.. 702 512 139U

BToai11|»cajl2 736 £50 15s

lJBBdl1»I2PC2006 612 - IQ

87.19 E207 Unrapod 3*jpc had. 656 -

16ED 5647 UX3K*20M. 534 - 57^

9508 75.43 fanrajlar 11 ‘3*2007 &H 640 143

B1» «a W.Wr.apt'B1 330 485 91

5603 4135 Hath Mb 3%EL 7021. - 322 1B4Q

B.T7 056 4<4peL20Z4 - 3.15 iBOft

to mr*4t P* ran ranMl V M*. PefaNcfae ra Mra-UnM

PikeC	♦or*	_52we*- Hgh " 'to
139U		140g 12®
1S8		153\ Wl
m		i» Mft
esa		Wj 52
		m «
143		ISUi 08%
91		£ 6
18+B		187% ITS*
1R0&		writ tew*

Mar 9	Bed data	Down	SAP Ufa)	SB price	li	<*9« rid	to* ri»	'» Octet
■ s			. ■ :.v					' '
BB	own	7750	AAA	1064895	5®	-am	*054	*059
ABfAnm	Km	7.125	AA~	10402®	835	-0®	+012	+t.14
Quteec	01/07	70®	A*	706.0706	002	-aw	*005	*081
CncnpRW	fan*	5088	AA-	969849	5 »	-007	-034	*0.14
■ CS					;
Bayer L-Bk	08/04	95®	AAA	1165727	551	*001	+032	*070 -
Toronto (Mdl	05/04	65®	M+-	11109®	676	• -	*057	:+a»s-
Bafi Canada	07799	10.62S	A+	. 1015351	5j65	+002	*033	+175
DetasdieBFHM	09/02	. 5575	M+	100.1383	503	♦am	-*077	*079 .
■ £'					. . . -			.'_,v
BB	12/07	7525	AAA	1164393	536	*007	*039	*049
OreeteBk	1M7	7.750	AA-	1103144	618	*005	+032	+13f
BMttiOa	corn	7525	A+	10100®	502	-are	-aio	+0 SB
Abbey Mat RW	(rare	5587	AA	10002®	451	*003	+075	-041
■ SR) . .					.			Ti
m	01438	1750	AAA	10443®	617	-003	-0.14	*095
BrtCetomMa	(rare	6250	AA	103-7089	104	+am	*001	*028
Hjeto-tate:	05/01	6750	o/l	1067227	250	+003	+003	+104 ..
to Beet	tram	1.711	n/a	99.7672	154	+002	*002	-are
■ YW			-
BRD (World 3k)	tone	. 5750	AAA	1147942	048	+006	-034	Jim . .
Spain (Mngdmil	lore	6750	AA	1155518	053	*0.®	-036	*002 .
Oed Fonder	(rare	4.750	A	1124988	1®	♦are	-0.43	+0.49
lav (Rep®	07/88	65(5	AA	1005451	077	♦008	-013	*001
■ tt							'••• r\
ODD (Worid BM	(rare	B.0®	AAA	1005296	502	+005	♦073	*024
NwSBi Wafas TY	05436	65®	n/a	103.1847	504	*006	♦028	*036'
6 Aus Sow Rn	06/03	7.750	AA	106,7456	501	*003	*019	*056 -
GMACAiat	05/01	90®.	n/a	1064593	57B	*003	+014	*003-

FINANCIAL TIMES

WEDNESDAY MARCH 10 1999

★

CURRENCIES & MONEY

Chinese whispers warn of

MARKETS REPORT

By ftVefanie Carroll and Alan Beattie

China raised interest rates yesterday for local accounts held in US and Hong Kong dollars, sparking rumours that the renminbi might be devalued.

The People’s Bank of China (PBOCl raised the interest rate for one-year US dollar deposits from 3.75 per cent to 4.4875 per cent.

But the PBOC denied reports that it has pulled together an informal team to look at a possible renminbi devaluation.

One analyst from a hank in London said markets had quickly come to the conclu- sion that the rumours were without substance, and bad behaved calmly.

He said the interest rate rise was not a surprise move, and showed confi- dence in the local currency more than a fear of currency

flight by investors.

Gene Frieda, analyst at the economics consultancy 4Cast, said he believed the devaluation rumour had started partly because the PBOC has held back crucial information.

Of particular interest are last year’s unreleased bal- ance of payments data, and the bank's foreign exchange reserves, he said.

Mr Frieda added that the PBOC has a very strong aversion to losing any of its reserves despite its large currency stockpDe.

■ The yen strengthened against the dollar yesterday as comments from the Rank of Japan diminished the chances of another Japanese monetary policy loosening in

■ POUND IN HEW YORK

Mar8	-■Latete—	-Pm. dose-
tape*	13185	130BS
i mm	13178	1.0(778
3mth	13170	13070
Tjr	13179	13095

the very near term.

Masaru Hayami. the Bod's governor, said yesterday that he expected interest rates to rise over time. JGB yields rose sharply on the comments, made during the Asian trading session, and the yen climbed against the dollar.

At one point the dollar fell to Y12Q.6, its lowest level for around a week. But it recov- ered later on the fears of an impending Chinese devalua- tion. and for the rest of the London session traded above Y121 against the yen.

Mr Hayami’s comments confirmed for many that thin Friday's BoJ board meeting was unlikely to see any fur- ther radical moves to pump more money into the Japa- nese economy.

But Joe Prendergast, bead of global foreign exchange research for Credit Suisse First Boston, said it was careful to distinguish between comments made for financial markets’ consump-

DoUar

A^ratfteyanflfjwS)

124

Lion and those aimed at domestic consumers.

“With an ageing popula- tion dependent on interest income, the Bank or Japan has to strike a balance between saying that the monetary easing Is signifi- cant and saying it is tempo- rary,” he said.

Cameron Crise, currency strategist at Warburg Dillon Read in London, said the

devaluation

market was disappointed with Hayami's comments, which seem to indicate that he is still worried about inflation. "But the opacity of Japanese policy-making pre- vents any dear conclusion being drawn," he added.

Mr Crise said that that the policy uncertainty meant fewer investors were willing to take long-term positions in the yen.

"This is making the yen a very shortterm flow-driven currency,” he added.

■ Sterling trod water yester- day despite the potentially important effects of the UK Budget

The pound remained fixed

■ OTHER CURRENCIES

*fcrs e s

Cadi fe 560*09 - 56028? 34 JS70 - 34X780

»om an .215 - 371*1 zjsmo - 220240 tan 4345J0 - 4802030004? - 300040 taeft 0.4925 ■ 0.4329 03051 - 03052 Pern 5.4908 ■ 5.4994 34010 -34050 POM 63333 - 63457 3.3230 - 3.3290 tell 37*40 • 37.7287 23X300 - 2X3600 UAE 53292 - 5S32B 33777 - 15732

just below $1.61 for most of the day ahead of the annual UK Budget, delivered towards the end of the Lon- don session. Traders expec- ted few surprises in the Bud- get Only a downgrading of the government’s growth forecast or an announce- ment on European monetary union were expected to move sterling significantly.

In the event neither hap- pened and the pound moved little on the day.

■ The Thai central hank yes- terday tried to tighten restrictions on dollar/baht swaps to prevent speculators from taking advantage of tbe large difference between on- and off-shore forward swap premiums.

Tbe Thai central bank asked traders to stop selling tomorrow/nert day swaps to overseas customers to restrict the amount of baht in offshore markets. This will make it harder for inves- tors to sell the currency.

POUND SPOT FORWARD AGAINST THE POUND

DOLLAR SPOT FORWARD AGAINST THE DOLLAR

Owing amp BkttAr toys WU QliiOtt m fry spread kw

fete VA

ferae watte fete VA

nr Barit ol V* Gsp. Mb

Iter 9

Cloctag Omp mtt-pahi p Oif

fete VA

Tteee nates Oa par Jf ftp VA fete VA

anpe maria’ Bdgaas- Danrnrt	6ct« m	atuou	*6.0810	991 - 173	204283	203106	2DJS6	25	202911	23	109036	22	1026	Eurapa Aottr	{SC ig	126386	-0.0056	357 ■ 415	126706	126045	126184	13	125792	15	123833	22	1024
			583880	54500	59.7(08	23	594356	23	583254	12	1022	BrVa ar	m	375513	-oaira	431 - am	37.1450	383510	36.0923	13	308771	13	362443	22	1023
		*03425	77B - 290	113340	103678	113035	22	109677	23	103239	18	1053	Qenmad	pwn	88267	-00039	247 287	63432	63061	63177	13	6.7992	13	6.7032	13	1043
FtetaV	W	83183	*00350	143 - 222	83270	8.7760	67999	25	8.7677	23	ACTS?	22	B13	FWanfl*	(B4)	54611	-03025	58a -623	5.4749	5.44K3	14524	13	53354	13	53421	22	805
FlSU*	ffR)	9.7287	+03387	743 - 330	9.7383	9.8822	0.7083	25	95729	23	03188	22	7055	fta* a*	m	&Q249	-03027	235 - 28?	63401	&O0SS	60152	13	53955	73	SW7	22	7050
	PM)	23007	*03114	994 - 020	23047	28863	23946	25	23841	23	18375	22	1013		am	1.7964	-03006	960 - 968	13009	17915	1.7935	13	1.7879	15	1.7572	22	KUO
			+1.4200	506 - 020	477.297	475.162	478481	-U	481.463	-19		-15	627	OWES	w	295255	-04300	160 - 350	296.700	294770	296.465	-43	290475	-4.4		-35	624
	«5		+0.0046	675 - 688	1.1092	1.1625	1.1666	25	1.1613	23	1.1425	22	<nn	Mnr	d)	13824	*00006	821 - 827	1-3862	13789	130*7	-23	1389	-13	1.4132	-22	-
**r	W	28/1 J3	+11.4100	044 - 301	287434	285831	2885.72	25	285524	23	280018	22	753	w	pi	1778 43	-08200	803 - 884	17B294	177X33	177538	13	177008	13	173938	22	75.1
liMurixuy’	4*5	593290	+02375	023 - 557	593880	595430	50.7038	23	59.4856	23	S&3254	22	1022	Usenboag*	pjj)	373S16	•03170	431 - 601	37.1450	363510	383923	13	363771	13	302443	u	1023
	n	3.2684	+00130	669 ■ 698	17716	32977	8261 B	25	12407	23	3.1072	22	1015		«	23747	-03009	236 -245	?IPfP	23186	2X608	13	20148	13	138	22	1013
Honmy	(fed)	123839	*03265	763 - 915	123831	126293	127058	-21	12734	-13	127589	-06	923	nmr	9*«)	7330	-03185	520 - 580	73979	73375	73724	-27	73S43	-20	73003	-05	913
	i&)	297340	+1.1810	207 - 47?	297333	295322	296.718	25	wm	23	290BE2	22	91.7	Rnteri-	ft	184.140	-03640	097 - 182	184310	19X340	183345	13	181273	13	180128	22	923
Spate*	(Ptel	246J71	+03800	661 - 881	247320	245590	248255	25	245354	23	241354	22	763	ferin*	ft!	152823	-03700	788 - 858	151210	152410	152578	19	152103	13	149493	22	762
9wdcn	(%}	13.2428	+00297	316 - 535	112548	13.1944	1X2163	24	111714	22	12985	15	822	Staedn	(S»)	02010	-03180	960 - 060	82380	8191 S	11888	13	8.1654	1.7	80415	13	813
Satertaod	(5Fi)	?1W	+00121	641 - 668	2JB70	23512	23569	4.4	23417	43	22801	16	1Q7j4	SwOmtml	(Sf»)	1.4M9	*03010	644 - 654	13896	1.4595	1.4603	33	14517	33	1.412	33	1074
IK	0	-	-	-	.	.		.	.	.	.	.	1023	UK	»	13148	+00072	144 - 151	1.6151	13067	1314	03	13131	04	13148	00	1013
Ban	»	1.4832	*00059	825 - 838	1.4848	1.4760	14801	23	1.4747	23	1.4509	22	.	Bn	to	13888	+03005	S85-B90	13918	13857	10905	-13	1.QS39	-13	1.1131	-22	-
sunt Amaricat	™	1.164680			“	“	“	-		-			*	SKf MKkfl		073505			•	“	"	“		“
AwnOna	(Pe»)	13146	*00072	142-149	13148	13065	•	.		.		.	.	AiganDoa	Pwj)	05999	-	999 - 999	09999	nOOQQ	a	a	-	-	•		-
Brad	W)	3.0721	-00949	674 - 768	3.1760	10670	.	.		.	-	-	.	Brad	PS)	13025	-03675	000 - 050	13700	13000	-	-	•	-	-	-	-
Cteab	«3»	24485	+03141	471 - 498	24500	24301	24478	03	24465	03	24478	00	77.7	canafe	IQ)	15163	+03020	158- 168	13180	13120	15165	-02	15166	-01	15158	00	775
Mateo	OewPwa	15.7939	-00382	840 - 038	158050	156651	16.1009	-233	183486	-213	103484	-223	.	Urns	mar Peso)	9.7810	-03660	770 - 850	9.7950	9J750	9975	-233	10321	-221	11361	-225	-
us* a fedDcMriate Eatt/AMca	13148	*03072	144 - 151	16151	16067	1314	as	13131	0.4	1J8148	03	1000	USA	R Eaat/Ahka			*		“	"	“		*		*	1100
taMa	(AS)	25364	-00133	346 - 379	25551	25275	23349	07	233Z4	08	25302	02	318	AaDaft	(A a	13707	-03153	701 - 713	xsm	13700	15703	03	156B6	02	15692	ai	815
Hong Kong	m	125118	*03550	087 - 149	125150	124503	125097	02	123226	-03	127861	-23	-	KngKong	(*S)	7.7485	-03002	482 - 487	7.7492	7J480	7.7511	-04	7.7633	-06	7306	-20
tedta	W	685805	*02776	95-014	683040	6&245D	UUWP	-63	pi mm	-05	733629	-7.4	-	hta	£fe)	424713	-03182 675 - 750	42S00P	424670	427213	-7.1	4X2013	-63	4551B6	-7.4
kataaria	Ptepiah)	MSS2J7	+18433	888 - 666	146S430	14270.70	1489039 -29.7	1571138	-324	19&L.16	-31.1	-	tedonate	ffeptfQ	900000	+7S30 0M - 000	905030	886630	9220	-293	974 0	-32JS	11600	—31-1
teraei	(SWfl.	65031	+00212	946 - 116	63120	94947	.	.	.		•		-	ism	(SW	43Z73	-03048	229 - 317	4X323	43270	a	-	-	-	-	-
Japan	ro	195382	-03250	891 • 073	196370	184.430	1*087	S3	191432	53	180177	53	1278	Jaw	PO	121 J7tl	-05OT	340 - 400	122360	120350	12038	50	119315	43	115395	50	1293
Uatepat	Mb	6.1361	*00272	361 - 381	61367	6.1058	.	-	.	.	•	-	-	Mrismat	(MS	stmt	-	000- 000	lawn	tom	-	-	-	-	-
NmZatent	MZS}	33191	-03010	164-217	33367	33075	3318	12	13117	13	10058	04	925	Nes ZsaJand	m	13697	-03089	665 - 709	13843	13680	13679	12	13661	03	13666	02
	(fen)	833561	+05234	002 - 119	833120	823000	63.4858	-82	642143	-73	673343	-78	-	PWppms	P«0)	300500	+01500	00D - 000	392000	38MnO	39335	-83	393065	-73	41009	-73
	(Sfe	6iK4	+00263	537 - 571	60572	63254	63641	-17	53606	-17	6.(733	-18	•	SoriAoM	(SR)	17507	-4003	468 - S03	17503	17495	17574	-23	17886	-21	33231	-13
	pj)	2.7939	+63151	924 - 953	2JS55	27781	27*6	X5	27712	33	27301	23	-	Stagapora	isa	1.7302	+03017	297 - 307	1.7322	1.72*3	1.72SB	23	1J179	23	15907	23
South AMra	«■	93554	-03122	471 - 636	93640	93768	103384	-103	10.17B9	-00	107547	-83	-	Sotftflnca	n	6.1653	-03350	615 - 690	6.1 BOO	6.1400	62198	-103	63103	-94	63603	-8.0
Souffl tons	(BtaJ	1964.78	+23800	2«- 707	793723	19*68	-	-		a	a	-	-	SoUSKtrSi	(»*#	1 23S35	— 3i50D	420 - SO	127730	723430	-	-	“	-	-	•	“
	039	535613	+02774	689 - 536		512782	5X3174	— SL7	543381	-16	543016	-25	-	Trinan	(TS)	311700	+0030	200 - 200	«Mn	311100	31345	-63	335	-40	34	-25	-
TfeM	BO	802060	+04515	364 - 755	602790	596630	60.4748	-54		-4.1	625475	-X 9	-	Hafenfl	eo	372850	+0.1150	500 - 200	373900	373000	37.47	-60	3731	-43	31735	-33	-
1 lam M Mr i BWOta apna* »«• nws»a am riaa m tariSm ritemmm maq tarn emamar sb amriaatei ma oosa	TOO US	f SOI cm xr Jftr ttr t tdftMmaitrlteamignwnaa TteMUlatef rte tarn teaen date* am a 343 MMfiO a team ri Xte gals tern m BMtar amdk ■ aa Ootv M« cam am a* m tas m ad m item. ik. mm a On m pate ■ IS cmat it tate nfete tea Iter B Bm mp tel rite, m «ri tete aat mi n ta tat m m n m Mte n dated tarn he ■MmunOlS CUSM snr m Rm»c RUE onto ten am n mM M » FT BAJ book fe eteteM ms pd«M n H ten mt ten utekite ■ M larte s tmtomiTxm

1 WORLD INTEREST RATES \|
MONEY RATES
■arS	Onr	Ore	few	Sh	Ore	LonO	Dh	flwo
		man	FTI#tt	rites	jmr	HB.	iW	rat
Etn-zpoe	3	3;	H	3i	3i	-	100	3.00
SoilHfead	tS	1M	n	1H	T5	—	1.00	-
US	<s	4S	48	s;	S14	-	450	-
Jmm	&	H	M	Vi	i	-	050	-
■ $ UBQR BBA London			5£	5%
	-	4J	5	-	-	-
os DMMr CDs	-	4.72	4.77	433	5.01	-	-	-
Earn Urikod Da	-	«	34	3£		-	-	-
SDR Itfod Ds	-		3Vi	(4		-	■	-
B8A Euro Ubor	-	H	H	31	34	-	-	-
Eva Eninr	-	1M5	mi		3364	-	-	-
HJWA	3.03	-	-	-	-	-	”	”
amomA	30232	-	-	-	-	~	”
	fe tee BfiA Limdon ate. tad ri um
• ten Mite »	te ante tamj mb. USB as. on s ton um npem w
INTERNATIONAL CURRENCY RATES
Mar 9	Shat	7		On	Raw	Sh		Ore
	Ksnn	nrife*	matt	mirths	manha	new

Euo	3i - 2£	34-25	34-34	3K-34	34-23	34-3
Osi* Krone	34 - a£	3i-34	3H-34	34-33	31-38	3 S - 33
StofioQ	Bi-SM	55-55	55-58	S-5i	5S-5M	53 • 5«
Saris Fm	W-1	1H- It	14-U	1H- W	14 -li	Itt - 13
Qretoi Defer	4fl -4g	5i-4H	Si-4g	Si-43	5ft -43	54 - 5ft
USDofer		48-48	4JS-4B	5» - 4J	5J -5	54 - S5
Japreese Yn	Ji-i	4-4	a-i	4-4	1 - a	i ' *
Asbajang	H - h	Z» - 1H	T* ■ 1^	2% - ift	214-2	H4 - 2ft
Shot tann iriaaaa	CM III M 16 Bfer tari Yrii. 0BBS tte a*r nedca

■ TUBS MWHH EOWMOB FUTURES [MATT)PaB Marta* ritejg «B

	Open	Soi price	Chanpe	fete	Lew	Ed. w*	Open It
Mar	9602	96 B2	-	9092	9601	7,798	38026
jun	97X6	97.06	-	9706	9604	10,776	27030
M TTM3E MOHIM EDRB0R FUTURES (LBTE) Elm 100-ram
	Open	Sefi price	□range	fete	Uw	Ed. vte	Open U.
Mar	96020	96020	-	96030	96020	14434	141075
	07X770	177055	-0X770	97085	S7X740	49078	157378
Sep	97X60	97065	-0010	97.100	97050	47416	121793
Ore	98030	98025	+0.005	960*5	96.785	12895	97895
■ THREE M0HTH EUH0 UBOR RflNRES (UFQ €1m 100-rate
	Open	San price	Orange	fete	Low	Ed. *oi	Dpan ML
Mar	96025	98.907	+0	96025	96020	1300	118537
	97.075	97.055	-0010	97075	97050	1078	107381
	97090	97065	-0010	97090	97.070	536	93655
Dec	96035	9602S	+OX7Q5	96095	96000	2079	86108
a embor orraas aJ+D eua ioo-im

SOUra CALLS PUTS

ana mi Price	Mar	Jtil	Sep	Dec	Mar	Jon	Sep	Dec
96875 9700D	0056 0006	tt.125	aiao	0.130	0X710 0085	0070	0.115	0006
an 25 97258	0 0	0035	0X775	0X770	pHVi 0030		0080	0495
at at nat cm jasjo	n« s» Mo ttfa 4m re. cafc areas Pm 11SM2

■ mag MOUTH BOBO jfeCB OWatB gJTE) Cite 100 -rata

6trta CALLS — PHIS
Price	Mar	Joi	Sep	Dec	Mar	Jun	Sap	D9C
90875
97000	0085	0.180	0.130	0210	0030	0.115	0205	OWS
97125 87250	0020	0X775	O07O	0.110	021$	0260	0495	0.405

to. ml bal can 523 res a nnkw &f* w, cm 27SW7 pub iroieb

■ TWEE HOKIH EURO SWISS FRANC fOlURB JLPFEJ SFnm 100 -rate

	Open	Sdl price	Change
Mar	9B0OO	98000	-
Jim	91510	98000	+0X710
Sep	96290	98400	-
Dae	91130	98.130	+0010

fete	Low	EsL Mi	Opea Bfl-
98020	98080	0986	s van
98520	98470	13504	73964
98420	98380	3247	41008
98140	98110	1124	I56Z5

ims MONTH EUROYEN FUTURES JJFFE) YlOOtn 100 -trie

Opai Sett pits C&anp Ntfi Low BL mV 0pm ML Iter 99.78 0 0

kf] 99.78 -031 0 0

Sep 90.76 -0.02 0 0

• UHE teun ai» awed an APT

■ EURO SWISS FRANC OPTIOWS flJEFE) SFtlm 100-rate

ante calls purs

Price Iter an Sep tear Jin Sep

98750 0010 0375 0.100 0.160 0325 0.450

98S75 0 0275

to. «L am cm o Pm is» pib*m mts wen n. can ana Pm jtis

CROSS RATES AND DERIVATIVES

EXCHANGE CROSS RATES

Mar B	BFr	DKr	F ft	DM	K	L	fi	m	Es	Pti	SKr	Sft	£	a	S	r	C
	(B R)	100	1842	1626	4048	1052	4800	5.463	2120	4970	4120	22.13	3054	1.672	4092	2099	3270	2479
	(DKi)	5427	10	8025	2031	1.060	2805	2-965	1101	®.7	mg	i2xn	2.146	0007	2221	1.486	1770	1245
	(FFf)	6120	11.33	10	2082	1201	2952	3260	1304	3050	253.7	1301	2.431	1.028	2517	1.660	201.4	1.525
	pm	30.63	3000	3254	1	0.403	9900	1.127	4273	1020	6507	4065	0015	6345	6844	0057	6708	0011
	ro	5122	9.437	8329	2.483	1	2459	2.798	1008	254.6	2112	1124	1025	0066	2096	1283	1670	1270
feiy'	(L)	2.083	0284	0239	0.101	QXJ41	100	0.114	0442	1025	6093	6461	6082	6035	6085	0X156	6025	0.052
PMdW lands*		1821	3273	2077	0.828	0257	BULB	1	3081	9657	7500	4X62	6724	0206	6749	6494	59.96	0.454
	(NK»	<7.17	8091	7070	2287	0^1	2264	2077	10	234.4	1940	1644	10®	6788	1030	1273	1540	2.189
	(Es)	20.12	1707	3272	0076	0293	9650	1XJ99	42B6	100	po oq	4.454	6798	6336	0023	0043	6501	6499
Spain'	(Piaj	3424	4.467	3043	1.175	0.473	1164	1.324	5.140	1200	100	5266	6959	6405	0092	0054	79.42	6601
	(SKr)	45.18	8224	7247	2.190	0882	210	2.468	9078	2240	1862	10	1.786	6755	1049	1219	1460	1.120
		2529	4060	4.113	1226	0494	1214	1282	5262	1257	1042	5098	1	6423	1.035	6683	8205	0027
	(E)	59.82	11.02	9.728	2901	1.188	2872	8268	12B8	2972	2460	1324	2286	1	2449	1015	1960	1.483
	(CS)	24.44	4.502	3073	1.185	0477	1173	1235	5.180	121.4	1000	5.409	6966	6408	1	6660	8604	6606
		37.05	8027	6.02S	1.796	0.723	1778	2024	7055	184.1	1520	620T	1.4®	0019	1.51B	1	121.4	0018
	(ff	30-53	5025	4964	1.480	0.596	1465	1068	6.472	1517	12S0	6757	1207	0510	1249	0024	100	6757
Euo	1*}	4034	7.433	6260	1056	0.788	1936	2204	agg	2000	1664	8029	1095	6674	1051	1089	132.1	1

QMac now. Fradi m, Nweska am m Sana a*» m « te* >*■ ** in «* pips w » * bd am

■ D-MARK FUTURES {CUE) DM 125.000 per DM ■ T« HIHUtta Pg Vkn 125ra pa Ten 100

Open	Lfed	Change	fete	UlW	Ed-vte	Open taL
Mar 00570	65564	-0.0005	0-5582	65555	TlrftZ	56740
	00589	-60006	65608	65579	11,130	22204
Sep	quips	-	-	“	1	187
M 9BSS HIAK (VTIffES (CME) SFr 125.000 per STr

Mar

Jrai

Sep

68843

06902

00829

66888

00968

-00014

>00016

00859

6GS19

00825

00880

21027

23281

35073

34061

321

base lending rates

	0p«	tme	Change	feh	Low	EsL VQI	Open «L
Mr	06232	00215	-60014	00296	68195	28079	6C.778
Jm	00329	00319	-60009	00397	00300	31,1®	51004
Sep	00420	6B420	-60013	00420	00420	24	1035
■ STBtUIB HI1U&S (De ES20QO per £
Mar	10084	10098	+60020	10110	10078	13004	44030
Jn	10064	1-BOW	+60632	10112	10032	13029	32083
Sep		10080	+60022	10080		19	243

UK INTEREST RATES

Mem S Company SJO AOed Irs/i Bank (G0? 530 •Heniy Annbacher 630 Banco BBjao Vtacaya 503 BnUdO/ptn S-50 BankOf hetend 530

Bankodnda SJ»

Bank cl Scodoni G30 BaidayeBank BSD

Bt Btfof Mtf East 530 •tamShMuySCoUd 500 CSbankNA 530

Qyriaadato Bank 5.50 The CMpewBw Bartt530 Corita&Co 530

Cyprus Poputer Bar* S£0

OuncanLawrio 530

Exeter Tnwl Lkntad 630 •Robed Raring ft OoSS) Hat* Bank AG Zurich &50 Heritafcto & Gan bvEteXLSO CHoamftCo S50 •36 Hambras Bank STnril 530

Shanohaism Inveanc Bank (UK) LW593 Aten Hodge Bank 530 •Leaped Joaapn < Sue 530 Lloyd* Bank 530

MtmndBank 530

NafWesfrnkister 630 •RaBnten 530 FtoyaBkdSuMnd 530 ScotUiWdtMS Bank 550 •Steiger & Friedandar 500

Sntti&WMamscn 530 Swilfenk 530

TS8 550

Unfed Bank of KewdLSSO Unty Truer Bart Pie 530 WNUaesy LafcSaw 530 YoricsWraBer* &»

• Uesfcere of London Imeamrs Benkfeig Aaa odaflu

LONDON MONEY RATES

Owr-

Jdara

One

mo®

17m

imnBis

Sbt

One

ttaU*5 ttft* »-« 5H-54 SM-SJ 5ft - W 54 - 51 53 - 5J

Staring CDs - 5»-5| SJ-5J 5ft-5» Si - 54

Traasray EHs 53 • SB 54 - H

Mtt «- 54 54-54

Locaf utfofir daps 5ft - 5* 5H-5# 58 - 51 54 -Ra 554-514 514 - 5ft

Dsooit toW ftps 554 - 54 554 - 54 ....

IX down an* fiase fenfeg

nte 5M pr cm ten M 4, 1999

up a 1 1-3 3-s

monte tnottei

9-12

62S

635

Cats at Tax dep. plOOJXH? 4

cob et Bb spOb EWD0D la 4pt [taped* ateteiu kr tadi 2pc.

we aw ate M pate a iter 5 5JM2ege. BOD feM tm Sap Eteort Horn. Me w dqr fea 2S. teas, mate m ter pa« 4ter 24, MP ■ ter 0. 1 W. Scam* * Sblfea tetenme am tr pen* an S1 1 n»M 25 BN. 3daw N 6 V Step Tfcra Mam ha tete Sitae tar iterlW

■ THBEE MONTH 8TBIUM0 FUTURES (UFfg E5QOJOO pofaB ol 100%

	Open	San price	Orange	fete	Lo*	EsL «*	Open ML
M3T	94060	94030	-0X125	94060	94020	17795	160441
JUI	94050	94.735	-am	94050	94.730	35472	178926
Sep	94080	94.755	■6.115	94090	94.740	47062	183284
Dec	94030	94020	-6100	94 640	94010	9303	145564
Mar	94.750	94045	-oxa 0	94.780	94030	15948	135202

Ate naed on APT. M ten karat np at tor pwIbb Or

■ SWCTT sranifi ornDHS (LJffE) £500.000 potm aiioo%

safe		- CALLS -			PUTS -
Price	Mr	Jim	Sep	Mr	Jot	Sep
94500	6040	0305	6395	oxno	0.070	6140
94625	6005			6100
947®	0	61®	0045	0220	61®	0240
94875	0			6345
95000	0	0.060	6135	6470	ns?*;	6380
95125	0			6595

IS. «H am cm S3» PVB 2BS3. Prattea Barte 0001 ai. ona SB7790 lYS 6SM7S

■ THBff MONTH E0R1I0IB1AR (CUE) Sim pohte te 100%

	Open	Ltaea	Cringe	fete	Low	Ed. Ml	Open ML
Ms	9500	95.00	-	9500	9409	49.B2	399.988
Jim	9409	9407	-001	94.90	9408	65019	459.170
Sep	94.71	94.76	-aoi	94.73	9408	106.156	474.007
■ US TREASURY HLL FUTURES fCMQ Sim per 100%
War		9500		_	9500	208	1,705
Jim	95*50	95.50	-0U3	9530	9500	624	1061

Al ttaen krWES Ipatb pren* ®T

( ANZ \

Al NZ Banking Group (New Zealand) Limited

(incorporated \dih limited liability in Nnr Zealand, t

EMS EUROPEAN CURRENCY UNIT RATES

Mar 9	Eon cm rates	Rate agakBl Eon C	Change on dqr	%+7- trera cap. rate	% mead v wesfcad	o». Ind.
Greece	358.109	32105	-625	-801	908	60
Deanaric	706038	7.4329	+00007	-007	pnn	3
HON ERM MEtOBS
UK	0053644	007540	-60022	3X0	-308	-

teeomriaaMMkrteBmmCimtemi ■nJotwonmi^naim «

> ri te <amak oatei oa tte « Ete c oi criotate Or ■* Ftanrii Tim.

M PtteADaPttASEE/SOPnOWS £31^S0 KafepaptWil

StM Pnce	Mar	— CALLS Apr	M*»	MV	— PUIS — Apr	MW
1090	1.73	205	210	612	1.06	10S
1000	1.04	209	208	000	100	700
1010	(LSD	102	2-12	684	102	200

Pntewdayteni.cmmPmnta.Pm ttayte ton KA. cm nta Pte nta

U.S.S 125,000,000

Subordinated Floating Rate Notes due 2005 guaranteed on a subordinated basis by

Australia and New Zealand Banking Group Limited

/ICAE. 90S 357 522

(incorporated with (untied liability in the Staff of Kcuria. Australia!

NOTICE IS HEREBY GIVEN that for die interest Period 10th March, 1999 lo JOth June, 1999 die Notes will cany a Rale of Interest of 5.4596 percent per annum with an Amount of Interest of U.S. SI 39.28 per U.S. $10,000 Ntse and U.S. SU92.78 per U.S. 5100^)00 Nott The relevant Inures) Payment Dale will be lOih June. 1999.

The First National Bank of Chicago

Ageat Bank

M PHLAtCJHA 8E D-MIWWS 0PTIWS DM82300 (I per 0W

Strike Price	Mtr	— CALLS — Apr	fty	MV	1 I* 1	Afty
0060	611	005	677	635	678	623
0065	005	007	65B	680	1.10	102
0570	002	006	641	106	-	-

Ptetew Ante KL CMM B* ate . Pm. ayte «m H. CUB nta Pm ate

We want your business.

For more irrformation on Classified Business Advertising in the FT please- call:

Tel: -r44 171 873 3349 Fax.- +44 17 1 873 3064

. B stock market; offering a wrgle point of access for International growth companies and investors across Europe and beyond. WhJ} one rule book, one EASDAQ is the only truly pan-turof*»n

c ___,n —jj-p setriement operations, our unified structure provides all market partidpancs with a liquid, well-regulated platform for growth - irrespective of membership, and seamless pan~ ropran

■ r™ omwtii comoanies with the foresight and determination to expand their horizons are listing on EASDAQ. And, as a result, theyVe meeting with growing success,

national boundaries. Increasing^1 quality growm

Bnmek -^222276520

FnrttfareHSWVTWSO*

London -H4 171 489 9990

Parb *33 I 53 53 67 95

6ASDAQ

www.easdaq.be info@easdaq.be

3le

ate. Since ias been which

e PTrjfes- ber shift

's going ^wotny. does not or a pro- present next io

initially

XlUt 400

eactton

ling a mil By itribute

ItL

rts are armed ubstan- time of

st was L9 per ' prod- and is it next

■his is d and ere is

ocure-

s the ed to otnes- ligbt next

-K

' ” ’ 4-. .. ' . 4 v-^-

FINANCIAL. TIMES WEDNESDAY MARCH 10 1 W

COMMODITIES & AGRICULTURE

Increase in demand seen for platinum

China urged to boost gold reserves

By Gillian O'Connor Mining Correspondent

Platinum group metals are providing one of the few glimmers of light in other- wise depressed metals markets.

Platinum itself bad a run-up last month, but the real action has been in two important associated metals, palladium and rhodium, both of which have trebled in price (in US dollar terms) since the start of 1997.

The buoyant markets have also helped share prices of platinum producers. The platinum group metals' strength, stems from its use for cleaning up vehicle exhaust emissions in autoca- talysts. More stringent stan- dards. particularly in the US, mean demand is set to rise.

Shares of South African platinum producers, whose profitability has been helped by a weaker rand, have been especially buoyant. Impala Platinum, for instance, has risen by about 140 per cent since the start of 1997. Mer- cury Asset Management now has over 13 per cent of its £74 m tSilymi Gold & Gen- eral unit trust invested in South African platinum shares.

Supply of the metals is already tight, particularly in palladium, where Russia is the largest producer. Exports from .Norilsk, in Arctic Rus- sia. are plagued by physical and bureaucratic delays, although a new long-term export licence for palladium was last week said to have been agreed.

Worldwide demand for pal- ladium was 3.2m ounces in iy98. about 3m more than new production, according to Johnson Mat they, and sup- ply deficits are expected to continue into *J»0. Analysts disagree whether Russia can or will plug the gap.

BASE METALS

LONDON METAL EXCHANGE

iPrtces from flnuiganaJcd Meal Tradngl ■ AlHMUSUM, 99l7 PURITY IS per Tunnel

“Since 1994. Russia has sold about 10m ounces from its stocks to balance increas- ing demand. However, the size and availability of the remaining stocks remain a stale secret and leaves the market in uncertainty." says the latest strategic report from Canadian researchers Metals Economics Group.

Expectations of strong demand have already prompted leading palladium producers to expand produc- tion. both through new mines and expansion at existing mines. MEG esti- mates how these expansion plans will add to supply as follows:

• The 14 major palladium producing mines could increase their capacity from 5.2m ounces in 1999 to 5.6m ounces in 2001. This estimate | assumes no increase at Nor- ilsk, whose capacity is left I unchanged at 2.5m ounces. Capacity is expected to remain unchanged at Inco's Ontario division and Gold Fields' Northam mine. AH others are expected to rise, with notably large capacity increases at North American Palladium's Lac Des Isles Mine (up 120,000 ounces to 2QO.OOQ ounces) and BHP/ Zimplats' Hartley mine (up 80.000 ounces to 110.000 ounces).

• Six potential new mines, most with start-up dates of 2001 or earlier, could add another 800,000 ounces to annual palladium production capacity. The three largest are: Stillwater’s East Boul- der (384.000 ounces); Zim- plats' Ngezi (134,000); Amplats’ Bafokeng-Rasi- mone (100.000).

• Another five projects are at an early stage of explora- tion.

Strategic Report from Metals Economics Group. PO Box 2206. Halifax. Nova Scotia, Canada B3J 3C4

By James Kanflng fat DeQbig

China should triple the ratio of gold in the foreign exchange reserves, which have become over-invested In US dollars, according to a recommendation by a senior official at the national gold bureau.

The allocation of China’s $l45bn foreign exchange reserves, the second largest in the world, has the power to sway currency markets.

The proposal to boost Chi- na's gold reserves bucks the recent trend of disposals of gold holdings by central banks particularly in Europe, but if Beijing takes up the recommendation, it could offer support for flag- ging international gold prices.

But the suggestion from a gold industry official also underlines how gold has lost some of its shine in China, where public consumption

has slumped over the past five years and government demand stagnated.

Liu Shanen, deputy direc- tor of the gold economic development research centre at the ministry of metallurgi- cal industry, warned that . excessive US weighting of the foreign exchange reserves could “mean bold- ing national security hostage to the US dollar”.

The real extent of Chinese gold holdings is a state

secret. According to the pub- lished figures, China's hold- ings in gold have been steady at around 337 tonnes for more than a decade.

That represents a ratio of 29 per cent of the foreign exchange reserves, signifi- cantly lower than countries such as the US (71 per cent) and France (4? per cent) according to World Gold Council figures.

The published figures are treated with great scepticism

by- the industry, which esti- mates the central bank bolds perhaps as much as 1,000 tonnes of gold.

Mr Liu, who has submitted his proposal to the managers of China's exchange reserves but has no influence over' their decision, says there are doubts over the possible "overvaluation of the US dol- lar", the volatility of the Jap- anese yen and the "uncer- tainties*’ that surround the infant euro.

Venezuelan coffee industry perks up

The Caribbean country has renewed its focus on the crop, says Raymond Colitt

As Venezuela’s oil Indus- launched a technical assi: try, the principal source tance programme aimed a of foreign exchange, is increasing productivity b

As Venezuela’s oil indus- try, the principal source of foreign exchange, is hit by record low petrol prices and production cuts, the Caribbean nation is rediscovering what was once Its leading cash crop - coffee.

For decades, the country's coffee industry had been overshadowed by oiL Farm- ers abandoned their coffee plantations for more lucra- tive jobs in the cities, and coffee production plummeted as oil output soared.

But today, a coffee renais- sance is under way, as coffee growers are boosting produc- tivity and quality and stag- ing a gradual comeback an international markets.

According to Gustavo Mendoza Sanchez, managing director of Foncafe. the state coffee fund, production for the harvest ending this Sep- tember is to reach a 50-year high of 19m quintals (198m 60kg bags). That is up from only 19m quintals last year.

The industry's tumround began in 1992, when Foncafe relinquished Us monopoly on distributing coffee and fixing prices. The deregu- lated sector attracted fresh Investment capital.

In addition, Foncafe

launched a technical assis- tance programme aimed at increasing productivity by replacing old coffee bushes and applying new produc- tion techniques.

"We are now beginning to see the results of those efforts," says Mr Mendoza.

Unlike other coffee export- ers, Venezuela traditionally consumed much of its best coffee domestically. At 780,000 bags a year for a pop- ulation of 22m. per capita coffee consumption has been among the. highest in the world.

Yet; a prolonged economic crisis and slumping con- sumer demand has forced producers to look for over seas markets.

For example. Antonio Ruiz, a farmer in the west- ern state of M6rida. has become a model for the rest of the industry. Production yields at his Los Canales plantation reach a record 94 bags a hectare because of high density planting and the frequent pruning of trees.

“1 was tired of the local buyers, who paid little and late. Now I have a better income." he says, though he admits Venezuelan coffee producers still have some

way to go in convincing for- eign buyers of quality and reliability in their delivery.

“Without the intermedia- tion of Foncafe, we can deal directly with traders and get better deals." says Jose Yanez. head of an associa- tion of L600 coffee producers in Portuguesa.

The incentive to export is apparent. While a 69kg bag of premium washed coffee sells for 47,000 bolivars (SS1.5) in Caracas, it can fetch 62,000 bolivars (S107.5) in New York with shipping and handling cost of 85. says Javier Dominguez, a Caracas coffee trader.

However, not everyone has been able to overcome the domestic slump in demand.

Dionisio G6mez, a small producer in Merida, says be took out a loan to modernise his coffee plantation when interest rates rose dramatic-

ally and prices fell. “Not only am 1 short of cash to make the improvements that foreign buyers demand, but at -900 bolivars per pound. I'm earning 20 bolivars less than my production cost,” he says.

The biggest challenge for Venezuela’s coffee pro- ducers is accessing the international market and establishing a name for Ven- ezuelan brands, says Mr Dominguez. “We are still at a 10 per cent discount to N'ew York's spot market because our coffee is not known.’' he says.

There is also the continu- ous threat from la Broca, an insect that has affected much of neighbouring Col- ombia's production. It has been brought to Venezuela largely by contraband coffee from Colombia, and Foncafe

Precious Metals continued

■ SOLD C0MEX (100 Tray ut; S/trajr 0l)

GRAINS AND OIL SEEDS SOFTS

WHEAT UFFE (100 tomes: £ per tonne)

COCOA UFFE (10 tom* fitaMW

MEAT AND LIVESTOCK

■ UW CATTLE CHS KOJHSfls; CKES&ffl

has launched an Intense awareness campaign to limit its spread.

Still. Mr Mendoza says exports could exceed 600,000 bags for the season ending in September. This is still modest compared with neighbouring Colombia or Brazil but nearly four times the 160,000 bags sold abroad last year.

Indeed, be is confident Venezuela will regain its prestige on the international market.

The future of Venezuela's coffee industry could receive a further boost As part of its plans to diversify the econ- omy. the government is to stimulate agriculture via infrastructure projects and cheap loans.

“The recovery of the coun- try's coffee sector may well depend on these policies.” says Mr Ydnez.

I JOTTER PAD

Prospect of Opec deal lifts oil prices

jVUUFUQETS

By Robert Cacane and GiBian O’Connor

Oil prices finned yesterday, as one of the presumed hex- _ riers to another round of Opec production cuts was reported to have been civer- come in recent talks between Saudi Arabia and Iran. :

The price of Brent Blau), for April delivery was. quoted at $11.83 a barrel in late trading on London's International Petroleum . Exchange, 7 cents rip., bn.. Monday's close. • :

Early losses were quickly clawed back after a r^ort suggested that Saadi Arabia^ Opec's dominant member,' had accepted a new basis from which to measure Iran’s production cuts.

Most analysts say another big Opec cut will he needed! to push prices substantially' ; higher. But as Philip Verfe-i ger, a US oil economist, points out in his “latest monthly report, history, sag-, , gests commodity restraint agreements are usually! only effective at raising^ prices when underlying;

. . demand is strong and economic conditions are good. Such a state of affaire does not exist today".

Alcan Aluminium warned yesterday that its first-quar- ter net Income was likely to be 50-60 per cent lower than In the 1996 fourth quarter,' but showed no inclination to . cut production. Similar sto- icism across the industry is the main reason analysts expect the LME price of alu- minium to continue weak. So far this year it is down about 8 per cent on its level at the end of 1996.

At current price levels a number of producers are not covering their operating - costs. But substantial fixed costs mean -that closure could leave them with even higher running losses.

zU* '

, r ■m-'*' *r=" ”r

U.' V-ct- w-

;i-v:s ij: :

0(M 1143-4

Prenous U43-4A

ttqh/taw

MtOfflCUl 1143-4

Kerb dose

Open mt. ti a

lota daily iwntner n/a

■ AUMMUM ALLOY IS CQ tonne)

Ctaso 1013-H

Previous 1013-18

Wqlrtwi

AM OtaS 1017-8

Kerb close

Open ml n la

lota! drily bimont n/a

■ LEAD iS par to/mei

Oosa 4968-7 5

Prwtaa 505-6

WgMovr

AM Official 500-1

tab dw*

Open M n/a

3 nrttrs 11665-75 11675-68 1 170*1163 11675-8.0 1164-5

Salt

Day's

Open

Sett DayV

Opte

Sett

DayV

Opte

Sett Bay*

(HMD

* S53-A-..T •

price rtaoge ffigb

taw W U

price cfcange Mgh

Low

Voi

Bit

price change Etigh

lew W tat

Price change Efigh tow W

tat

jr . •+;

Mar

2924

+0.7 293.0

2914 16 <6

7X00 -0.78

Mar

858

860

851 735 3.622

Apr

6^525 +0.10C 68050 6810011^16

51.519

Apr

2934

+a; 2954

292.4 63434 108Jk

May

7S25 -0.75 75^0

7525

3.173

May

8GB

B71

B59 3.403 50^08

66.02: -+G.15C S5.1C0 SE3 6745

35.127

JBn

295.2

+0.r 298.0

294J3 1.580 26.361

JUT

77.10 -020 7750

77.10

1.4IB

Jri

885

883

B7B 949 14722

Mag

3155 -6JK0 63500 63.125 2,003

15.429

• = -J 1 TT

Aag

297.1

+06 2992

296.7 90 7.160

Sep

7625 -0.95 76.75

7675

165

Sep

903

905

8% 633 30029

Oct

B.425-aJ375 65S5 BSD 898

9.3M

Oct

299.0

+OJ6 301.0

299.0 2S 2*12

7825 -<L95 7800

7825

107

2.859

Dec

923

915 455 26,142

66 .850 -1 150 67.050 G&700 177

4.001

• talrevw.-.

Dee

3009

+04 3040

3010 142 13539

Jae

8025 -095 8090

8825

442

Mar

943

944

942 19 18353

Ftt

675Z5-OD25 5£0S 57.KH 33

926

ft v v—- . - .

Total

56457118,105

Tetri

345

Total

6751 187,962

Total

21^87 116791 |

-+ — t: srt , - IP

; PLATWUM OTHER 00 Tray SAraf w}

Apr	37i5	-3.0	379.0	3757	692 14.027
Jri	3735	-27	375.0	3737	215	3,135
Od	3735	-27	-	-	IT	1711
Total					1.118 18177
M PALLADMI NYMEX (100 TiOfBt; Stray KJ
Mar	34700	-0 65	_	_	35	320
Juc	348B0	-175 347.45 34370	112	2717
Sap	33860	-185	-	-	1	157
Total					147	3,135
M SILVER COHEX £9.Q0D Ooy ol: Cardroy at)
Mar		-47	5287	SKIP	75	2735
May	524 J)	-48	5327	521.0	5853 48748
Jri	524J	-4.6	5337	5227	453 15,594
Sqi	5247	-4.7	533.0	5227	22	4200
OK	524.0	-4.4	5327	5237	160	6788
Jan	523.7	-4.4	-	-	-	II

■ \9tgATgtfffl0toitePB«60toMM>

Mar 25550 -5JJ0 2BZ70 2S60G 4553 2570

May 26575 -455 27250 26550 15.426 48.382

M 275.75 -4.00 28250 275.00 14.854 55.429

Sep 28850 -475 29300 28S25 1,735 5713

Ok 30050 -475 30640 30040 1.774 7,742

Mar 31040 -340 31450 31040 103 2574

Total 3R2B21225Z7

■ MAIZE car {5400118 Ufa BBMBtahrtfl

Mo 21545 +145 21750 21340 4531 9785 May 22125 *050 22550 21975 44.1 27 140.488 Jri 22840 +075 23250 226.00 17051104*53 Sep 23475 - 237.00 23250 326 24751

Dec M50 -140 24540 24140 15435 60.305

Mr 25040 -140 25240 24850 830 7424

Total 043130387

N BAHAV UFFE (100 tan* £ per tome)

. COCOA CSCE <10 tame* Starnes)

i LEAH HOGS CUE >40.00015* '

Mar 1231 *3 1239 1220 20 266 Apr

May 1241 +3 1253 1226 1545 34705 Jon

Jri 1263 4-1 1274 1254 539 13721 JU

Sep 1287 - 1297 1283 138 7.665 Aug

Dec 1325 - 1333 1332 45 6424 Ocl

Mar 1360 - 1369 1352 53 6743 Dec

Total 2785 70466 Total

■ COCOA 8CC0) (SOffa/toroal MK

Mar 8 Price Pm. day Mar

Daly 97042 984.13 May

M GOFFS UFFE (5 tames; S/tonne) M

Aag

Mar 1720 - 1734 1712 282 7496 Total

May 1565 +15 1585 1581 1441 29.499

Jot 1573 +13 1573 1551 1443 9740

Sep 1571 +16 1571 1548 B2S 1050

■ MCKEL |S per Wnnel

Tetri 8A56 69747

Mar

7470

Ctose

wgh/taw

AM Otflcd

4830-90

4925-35

4930-35

4950-60

4990-5000

5025/4900

4980-85

ENERGY

M CRUDE 08. NY UK (1.000 banria. S/bairi)

May

S«P

■toe

Total

7470 -

75.00 -070 7725 -0.50 79.25 -070

163

- 303

20 639

Kerb close □pen nL Total it ay firmer M UN <5 per tomri

Close 5425-35 5350-55

Previous 5375-80 5315-20

Ugh/toW 5360/5310

AM Official 5390-400 5020-25

Kerb dose 5340-50

0pan mt n/a

Tote rfaBy uner n/a

■ zme, special high pate & pet tame)

Lateft Days Mica clangs Hgp 13.82 +0.19 1443 13 88 +0-15 14.07 1348 +0.12 14.05 1130 +110 1445 13.94 +0.10 14.05 1440 +4.12 1448

Low Vof bd

1136 97.317 109.1k 13.47 45,407 97.083 1150 22.166 68432 1347 8,187 33417 1163 3407 19441 1169 2450 15467 195788 581417

dose	1025-6	10358
Previous	1035-36	1044-45
Ugh/kw		1033/1027
AM Official	1024-5	1032737
hob ekoe		1032-3
Open JnL
Total data tanawr	nfe
■ COPPER, grade US pet Kernel
Close	13767-77	1404-5
Previous	1362-83	1380-90.5
Hightail		1408/1390
AM Widal	1373-3	1401-2
Kerb dose		1403-4
Open an.	rva

Total data tarmer rva

■ LME Aft) HflcU E/s raw: 1-60B0

LME ClmtiiH E/S rate 14110

Sort- 14168 3 rate 161 S3 Ernes l£153 9ms 16161

■ CHIBK 0U. PE (Mranel)

8pm B»f»

price change Mgh Lear Apr 11.82 +048 1149 11.49

May 1145 +046 12.10 1163

Jus 11)0 +044 1125 1140

Jol 1130 +0.13 1137 11.95

Aon 1119 -0.07 1219 1207

Sap 1223 -009 1226 1220

Total

■ HEATB6 00. HVfigX <42,000 U5 pfa;

Latest Day's

price efingg High I am Apr 36.00 +0.22 3840 35.10 :

May 3630 +0.19 3645 35A0

■tan 3660 +0.14 3640 3000

Jri 3720 +0.14 3730 36J55

Aug 37 90 +0.14 3645 3740

Sep 38.60 +004 3845 3840

VU Jnt

21,555 42584 21574 61740 6.879 41)4+ 1460 17485 211 7463 2045 5,688 ni» ala

oUSptaJ

■ SOYABEAK8 CBT (SjOOQfo min: tana/BOta l«M)

Mar 46440 +1.75 47040 461.00 5433 4.778

May 47240 +140 47840 47040 Z7042 61,781

Jd 48140 +1.50 48740 47845 6.467 44.122

Aag 48440 +1.75 490.00 48140 230 M.B8S

Sep 43840 +040 49340 464.50 235 5.150

Ho* 494-25 +140 50040 49140 3,751 25,162

Tote 46^86 15^485

■ SOTABEAH Ott. C6T (60.0006H: rate*)

Mar 1845 +040 1BJ7 1840 1218 2404

May 1841 +055 1944 1828 14.309 51,191

Jol 1948 +047 1942 1841 1329 32420

Aug 1943 +040 19.42 19.00 189 1767

Sep 1942 +047 19.60 1110 545 8.130

Oct 19.47 +0.65 19.70 1940 <4 4.780

Total 22/BI 138/01

■ SOTAOEAR HEAL GOT (100 tore S/tan)

Mar 1274 -17 1284 126.1 2427 5444

Mar 1720 - 1734 1712 282 7.696

May 1565 +15 1585 1561 1441 29v4»

Jot 1573 +13 1573 1551 1443 9449

Sep 1571 +16 1571 1548 B28 1050

fib* 1566 +16 1559 1558 26 M19

tea 1581 +16 - - - 430

Total on st.152

M COffff V CSCE (37,500fat cartsfltel

Mar 104.40 +140 10500 10345 39 539

Hay 106.15 +245 10740 1044010.762 24.058

Jlrf 10745 +245 10840 105.60 1.091 7.796

Sep 106.75 +140 11045 10740 369 4.660

Dec 11115 +145 11040 10925 147 1169

Mar 111.45 +1.45 112.10 110.50 34 704

Total 12/W2 40423

M COFFEE QCO) (05 cents/pamd)

Mar 8 Ptev. day

Comp, daly 8949 90.78

15 day mage — 80.76 91.06

■ WWTE SQ6AH UFFE (50 tomes; S/fimnei

May 2064 +14 2062 SS44 1,473 43413

Aug 1964 +04 2005 197.1 824 12743

Od 1924 +04 1944 1914 474 10269

Dec 1927 +0.1 1952 1920 387 3495

l«r 1974 +04 200.1 1974 136 1104

Hay 198.4 +0.5 - - - use

Tefal 1294 54,705

■ suoAR ir csce miooons certs a#

Apr	4275C -0725 42750 42.175 4.107	15.028
Jon	64^0-0.150 55.1 CO 54750 2372	11297
Jri	55825 -0L125 5572 55.150	290	4801
Aag	58775 -0275 56.175 S.775	90	4.061
Oct	55.000-0.075 55700 54800	159	4.763
Dec	55JSO-0JZ5O 55400 55200	43	2702
Total		7087	42220
■ ram BELLES CUE HOTGOtas cens/lbst
Mar	50.025-0758 50500 49350	411	514
May	51800-0750 528Q0 S1JQ5	861	2832
Jo)	S1250 -0.376 S3 800 52.450	69	958
Aag	52825-0800 51900 52200	19	352
Total		1749	4096

For blue-chip indexes that covhr the 50 most liquid stocks.

e-mail ttouaston.CMi wwwno«.«mi

CROSSWORD

No.’9! 934’ 'Set by ’ DARCY

LONDON TRADED OPTIONS

State prise S tana — Calls— — PaU ■

fir Jd fir Ji

High liter M tat 3840 35.10 22435 40,440 3645 35-40 7,373 23400 3640 3840 4.053 17420 3720 36J55 1.714 13212 3845 3740 1.069 10.579 3845 3840 2404 7434 41369158428

	12&£	-1J	1310	128.1 12073 45790	May	581	+009	508	5.71 6061 70760
Jri	1300	-1.1	1332	1301	2210 37082	Jri	5.59	+006	5.71	574 4,037 46,321
Aug	1328	-03	1347	131.7	308	11236	Ocl	502	+006	602	580	1.351 27023
Sep	134.1	-1 A	1368	1337	294	9.108	Mar	671	+006	880	6.49	823 18,142
Oct	1353	-17	13EL3	1352	33	4.468	Man	688	+405	685	680	20 2,964
Tatal					18206 127063	Jri	687	+0.04	689	6.63	22 2.156
M POTATOES UFFE CO tomes £ per bam*		Total				i30xnea8BZ
	284.0	-10	2870	2840	90	1863	M Conffifi NVCE ua.OOOte cenlaffiM
Apr	—
*»»	JI50	-80	3150	3150	4	40	Mar	6183	-325	6700	6100	66 1063
Jro	3250	-80	_	_	_		Hay	61.18	-026	6100	6085 8.674 24,767
Km	85.0	+50	_	_	_	_	Jri	60.45	-0.1 B	6000	60.15 3292 15.549
Mar	12S0	+70	-	-	-	-	Oct	59.70	-080	6020	59.70	36 1.774

M AUMMUM

1992%} LME n fa

■ COPPER (Grade M LME

n/J

nfla

nfe

> COFTSUFFE

7500

1650 .1 —

1700

■ COCOA UFFE

900

925

950

a BRENT CRUDE PE

1050

1100

1150

LONDON SPOT MARKETS

■ CRUDE OIL FOB (per barren +or-

Oubai 51145-120 -022

ten) atari tfawn SU23-1.3I -0265

taBM Btari (Apr) 311-74-142 -0255

W.TJ. Si 3.79- j 41 r -0475

a M. PRODUCTS NWEprorapi oehery OF nane)

tv	Jri	tv	Jri
May	Jri	«>»	Jri
142	«2	i	57
92	24	i	89
43	13	i	12E
May	Jri	May	AS
15	36	47	51
9	25	66	66
5	19	sr	84
Apr	**¥	Apr	May
136			20
63		6	29
18	-	12

»1 1 e: ' .a. ..

■ , - TJT

,_- =

HBH GRADE IX1PPEH (C0MEX1 Set! D eft price change High * 6230 +040 6100 E

■r 624S +0.40 6320 t

ay 6110 +0.45 6170 i

n 63 55 +045 6345 E

I 6385 +0.45 64.40 (

a 5420 +0.45 64 40 f

Lter Vof Irt

6225 659 2225

62 £5 167 34U

62 55 4.769 38481

6360 22 1.840

63.75 285 9.713

64 A0 36 1.466

5,127 74420

PRECIOUS METALS

■ LONDON BIHLUQK MARKET WK83 ajptefl by h M Hpaqc/iKfi

OrtdfTrnv aa S price £ e □an 292+0-29270

Opentec 291 70-32.10

■Inning 61 291900 181

Maroon fix 292950 181

Day's Etgtl 293.W-2942D

Bars Low 291 79-39210

ftemaus cite 3930-.'8940 Ljco Lite Mean GaU Lending HaJea (Vs U3S)

1 montti .429 6 morfta .447

3 BjqnBB — . 4 27 13 months 3.72

3 manttis 442

Star fix Ortaov ac. US ds equtv

Spcl 330.741 532.00

Star LereMnO taes I morfli . — — - -fc.DO 0 months

z maltha -2 00 12 monfli

3 rsonOo . — ...- ..-2.00

Sprice 29120 -2K70 291 70-32.10	£ eqotv	Era equfir

291000	181609	268.414
291050 29l8D-2Ma> 291 79-39110 SSJO-OTJO	181886	269.107

M GAS EH. B»E (S/temta

Self Day's Open

price rawer H|p tar W U

Mar 11140 -040 11240 10725 10468 15419

Apr 10625 - 10940 104.75 11,735 28,978

May 10825 +025 10850 104.75 4.400 18.776

Jon 10940 - 10940 10640 3223 15,307

M 111 DO -1114010825 668 B20D

Aag (13.00 -040 11340 11140 120 5451

Total 35400134,123

B AATOBAL GAS K (1J3H1 tem panee pg wrap

Apr 9.480+0120 9500 9*10 975 3,935

Mey 9350+0490 9480 0290 180 Z1X

Total 24BS 23200

M RATURAL SAS WTfiEC (10400 BWflu.: S/meflfiU

Ufiart Day"* Open

price dar«e Mga Low HI ini

Apr 1495 +003B 1310 1.835 49223 57431

May 1-910 +0.035 1425 1455 15.334 23.175

-tan 1.925+0428 1440 1485 5237 20.181

Jrt 1550+0430 1455 1415 3.134 16,437

Awg 1480+0419 1470 1435 2421 14,098

Sep 1475+0413 1.985 1.945 242016491

Total 98457281241

a i— reign sasquK

HYlgX (42400 US pate; PUS gafcl)

GaM Cotas fCragarram New SowW

•2.00 0 monrhs -2JM

•2 M 12 morths -240

200

S urtca L squn.

179-181 68-72 42-44

Latest Day1*

prior dange Mgh

4270 +0.09 4335 4345 +0.08 44.15 4420 +0.13 4440 4480 +023 4440 44.70 -047 4440 44,75 +043 44.75

Low Vd M

4140 20236 34477 4240 8482 21.723 4150 3,188 20.D42 4345 838 1E447

44.30 382 4.144

44.75 212 34M

33464108463

a FREIGHT EHFFSQ UFFE (SiO/Wm piteiQ

Mar 1000 -10 1010 995 44 217

Apr 1015 -15 1015 1010 30 606

•H 885 -5 885 885 2 563

Ocl 985 -5 - - - 370

Jan 1015 -5 — - - 39

Total W 2,105

Chsse Pres OH 964 958

PULP AND PAPER

■ Plug OMLX 1USS; 24 air ay tan}

Sett Day* Open

take eheute Ms* Low Vs) Ini Mar 40825 +240 - 284

Jun 43140 +2.00 43140 43140 10 413

Total IP 7Bi

FUTURES DATA

M fiteres dab anOatbr CHS.

Tea from the Tea Broken' Assooatwn Mombasa Thera was a strong and improved demand. Prices for the best BPis not maintained but crirer brighter and mediums were Irregular Exit on balance, firm. Neuter lower mediums aid plainer sorts were about 5 to IS cents dearer but poor leaWlbrous types tended in be netfecmO. Brighter PFIs tended dearer by about 3 fio 7 cents. Cokxay medians were dearer by S to 10 cants with fighter and brighter sorts up to IB cents dearer. Lower maefiunta and plain* aorta were a strong feature a**1 by S to 15 cents and- Gomennws more. Srightw nquoring p dusts

Doc 5943 -0.72 9020 59.70 911 16.53!

Mar 6145 +040 61.05 6040 181 2.175

Total 134W 83^29

M 0RAM6E J«CE Wffi p54«ag caBBteg

Mar 8340 -045 83.65 8340 129 375

May 6240 -145 8345 8140 450 16478

JM 8240 -035 8290 81.75 153 5488

Sep 8245 +040 8340 8340 51 2450

Mov 8340 +045 8345 82.70 50 1439

Jan 64 45 +0.70 8440 6440 71 1050

TOM 904 27416

VOLUME DATA

Open sneran and WMne rua dvren tar coronas traced on COMEX. NVIB. COT. MfC £ Off, CSCE end K Crate 01 an ore an In areas. VgUM & Open Merest totals ae hr afl traded monte.

INDICES

■ Renan (Base; 18/931 = 10Q
Mar 9	Marl rearfh	ago	yaw ago
13928	13587 1447.4	1690.0
■ CRB Mares (Base 1967 » 1QQ
Mar >	Mar fi aaate	aj»
18784	18673		-
M BSCI&prtiBess 1970 = 10W
MarS	MarS RMrih		jear *00
13907	13702 . 133.10	16002
LME WARQfOttSE STOOPS )mo\|
AtenMin	+S7S	B	814725
Aknrinksn rita	-280	B	85700
Cfltoer	-1750	to	697050
Lead	-1.175	to	105050
Mrirri	+18	to	60766
at	-1.075	n	308 7S0
ita	-20	u	1005

Premean GBscfine X	5176-128
Gas 01	S1 13-1 1 5
Hfavy fad 01	S56-57	-07
Hartitha	5109-111
Jet (ini	SI 23- 124	-2
Dtesai	S116-1I8
■ NATURAL GAS Perce/hem)
Barton rip 0	970-9.60	+0.13
retaem mvb. 7U laxsn /otrti jsb are?
■ EURSI
GoM \|per buy oa*	S292.45	+200
SM<« tper bvi	5320Ot	+7.50
Raaman iper tray ccj	S375.00	-170
PaBadhitn (per troy «.)	5346.00	-100
CUpper	67.0C
Lad QJS pnxLi	4500c
Tin (Kuaria Lurnpur)	1980r
Tai (New Yota	2S57	+10
Carte (tew wHgno	n Jap	+1 35"
Sheep Hie weignn	95S5p	+7 42*
nos Dhe MgtiOt	6409p	+3.43-
ton. day sugar mi	5151.10	-080
ton. day sugar Mai	321700	-170
Barter (Eng. few8	Una
Mata (US No! TaSow)	El 09 00
mad \|US Dark Nwflu	Una
Rriftr (Maof	4570p
Brito riptlf	46.00P
Brito IKUISSNoH	25470m	•170

« iriMira ,'Lvu

Paftn 0s iMatey.£ 40- ^

Copra (Pwof *i50z

Soyteeans (0S»

COHm ftriooL'A' iroei E645 |fl

#orifiips i644 Superj 2S2p

i_IP wt Wtc* c Ccwse JIIK i lOT&af : hbs.6 r 1**1™ - tar-ag IMS <4r VUteMtawa

SCf itoao. -Sgoainaiterdar ■ ■Xam

ot .utean uateend nmu P-tnpa t* ibs i£tt ; re?

ww d tup Ud

ACROSS

1 King captures knight, pos- sibly an islander (7)

5 Pop out and search round for something like the Dandy (7)

9 Lord missing a Roman poet? (5)

10 Almost regret one state's disaster (9)

11, 12 Where this puzzle offers a challenge? L9+5>

13 Space traveller found me in bed (5)

15 Stop filming after old-fash- ioned shot of a striker? (6,3)

18 What property-owners did with devilish tenant (9)

19 Nearly have a memory- lapse in the workshop (5)

21, 23 Cashing in, when group's on drugs (5-9)

25 Swan about during a dance she was involved in? (9)

26 Ctty has agreement for Ger- man and Spanish wine (5)

27 Get zany antics in oriental river (7)

28 When figure finally goes, destined to develop bulge? C7)

DOWN

1 Fellow interrupts man in charge, appearing baleful (7)

2 Are they found in the cop- shop or in ju£? (9)

3, 14 15 he waiting for a bus to Clapham? (3,2-3.$)

4 The flower of Greek youth

(9) ■ ~.

5 Gathered material from cockney’s account of excis- ing experience (5)

6, 24 Material for models of exhibits in the Louvre?

0X5)

7 Language is the same where l across lives (5)

8 Means of communication picked up by crew an SF movie (7)

14 See3 . -

16 Crafty subordinate -worker 19)

17 Possibly bear ' being restricted in diet (9)

18 Pleasure-seeker - a sort of

Peter Pan? (7) '

20 Area over the border - is Wales or Scotland? (7)

22 Hairdresser's loams sorted out (5)

23 Nick is hard hit (5)

24 See 6 — '

Solution 9333

aanaaBEis boohes 00B s 0 ci n HnoDHElHS E3HEHQC3

0 fi r.t Gi a o q s saaarsnaas dBase

□ El 0 q a B B „ □□□a aaasBBd

s dbs dnaastna bdcjq

B 13 DDE 0 E gaaaa aaBBincirans b s □ B B □0BQ0E] □OHHDraQB ana ei q b d aiaaBa ansanaBB

f . ■ *+«

v- - ::

^ L

feC'- < '

For solutions to today's crossword call 0906 843 0060. Calls cost 60p a minute.

-s^r

... Fi* &f

FES

ANCIAL TIMES WEDNESDAY MARCH fa;l^g

L-

I 1

fif

fit

? r

3 1

1 n

2 n

3 n flat Kru

Nfev

LONDON STOCK EXCHANGE

Footsie edges higher during chancellor’s speech

FTSEATI-Krare index

29GC

Eqcfly^arts#^' Tunewr by «**£ <ga^ •:

By Steve Thompson,

UK Stock Market Editor

The FTSE 100, delicately poised at 6,219.6 as the chan- cellor of the exchequer rose to deliver his third Budget speech in Parliament, grad- ually edged ahead, gaining in confidence as the speech progressed with only a few hiccups spoiling the party.

The effect of a half-point fell in gilts, which were not pleased by the apparent gen- erosity of the chancellor’s package, was offset by the potential boost to consumer

spending that would result from the tax cuts announced.

With the market closing minutes before Gordon Brown announced next year’s income tax cut, the index ended 28.9 ahead at 6.237.7.

There were few problems for the market’s middle- ranking stocks or the small, caps, both of which ended not far short of their session highs. The FTSE 250 closed 16.5 firmer at 5.375.7 after a day's high of 5,378.3. while the FTSE SmallCap was finally 7.0 up at 2,322.9.

The market leaders had

made rapid progress at the start of the day, with the FTSE 100 racing up almost 80 points and getting to within 32 points of its previ- ous intra-day high - 6,319.8 - as dealers reacted to Wall Street’s overnight strength.

'Die Dow Jones Industrial Average slipped 8 points, but the S&P 500 fait a record high. And the two leading Asian markets. Tokyo and Hong Kong, also made rapid progress.

Wall Street set an uncer- tain tone at the start of trad- ing yesterday, only to rally strongly as London closed.

The Initial reaction to the

Budget proposals was that the equity market would probably make progress.

The bead of market mak- ing at one big European investment bank described the Budget as “a bit boring”.

He added: “There were no really big shocks. The mar- ket feels okay as we speak, but it is near its peak and we will depend on Wall Street" Another said be saw the Budget as “neutral, as expec- ted. 1 think we’ll go better simply because the Budget is out of the way.”

David Butler, head of insti- tutional sales at Teather& Greenwood, said: “The only

surprise is that the chancel- lor left the drinks sector alone, which has to be bull- ish. But. truthfully, if Wall Street is down 150 points tonight, then we’ll come in lower. If it’s 200 points bet- ter, well come in higher.”

Bob Semple, UK equity market strategist at BT Alex Brown, said tbe Budget was biased towards the consumer and it looked as if it could boost the equity market.

“But there will be a worry over the likely performance of sterling and gilts.” he warned.

The Budget moves pro- duced plenty of shifts among

the various sectors, with the big drinks companies stabi- lising as tbe market regis- tered surprise that the chan- cellor had left duty on beer, wines and spirits tin touched.

Bat there was a significant sell-off in tbe water stocks and BAA as the chancellor gairf be would introduce a competition review.

Computer, IT stocks and Dixons, the high street retailer, were being chased after the proposed “comput- ers for sir measures.

Turnover in equities fin- ished just short of the Ibn mark, reaching 997.7m shares.

2500 .

■ Jan SaoK/TJE

incSces and ratios

FTSE 1®

FTSE 2®

FTSE 350 FTSc«-Ss»? FISM-SunsywW

19®

Tepr

£337 1 53757 29595 2861 13 2j67

Mar

Wi-

sest perfonwog sectors

1 UssuelHoteb —

Z Support Seroces

3 Prqjeir—

4 PfcaiMcraBsafe

£ .meaner Treses

.283 FT 30 TUBS r«4,g'

*15 5 F15E Nw-ftis p-B MJ8 ’

+129 FTSE lOOftn Mar

*1134 lUyitanrtett V«6

2£3 Long g&'aj at/ jU ratio .1X1 ... n9

Worst performing sectors- » ;

I wSEf ’ — - — ~ ' r-. • "TJ1-

__*20

+i 8

__+1.6

HatscWU Goods &Tgxb . Totracro-.

4 OS EiptonOon ft And

5 wane —

Brewer presses its case

COMPANIES REPORT

By Joel KBbzd, Peter John and Martin Brice

Drinks group South African Breweries yesterday surged through the 500p barrier on its way to securing a place in the FTSE 100 index.

Official dealings in SAB started on Monday, and deal- ers were confident that the rise in the stock, up 22L to 507?<p. would see the com- pany join the premier list- ing.

The FTSE equity indices committee will meet today for its quarterly meeting at which the new constituents of the leading index will be named. The changes take effect on March 22.

Telecoms group Energis is also expected to join the FTSE 100 rankings. National Grid reduced its holding in the group from just over 7-1 per cent to 49.5 per cent ear- lier this year.

ABN Amro reiterated its buy stance on Energis and reiterated its £17.50 share price target. However profit- taking left the shares trailing 42* 2 to £15.55.

National Grid recovered from recent lows to close S ahead at 436’. p. Credit Lyon- nais recently upgraded stock to “add” from “reduce".

Supporters of Misys were

also confident the informa- tion technology group would return to the Footsie. Active buying helped the shares firm 8 to 645p.

Hopes of a stay of execu- tion for Tomkins faded and the shares gave up 3% to 206'. Ip. in trade of 6m. Hie stock is expected to fall out of the FTSE 100. as is Wil- liams, which hardened 4 to 364*p.

Tobacco company Gal- laher might also be ejected from the premier listing. The shares fell 15\ to 414V«p.

Dealers reported aggres- sive buying of mining group Billiton amid hopes that it will bold on to its place. The

company has been buying back its own shares through Strand Investment Holdings, but it denied it was the big buyer of stock yesterday. The shares gained 4'A to 141’Ap in trade of 15m.

Albright & Wilson, the phosphates group facing a bid from Albemarle of the US. jumped sharply as the prospect grew that another company would throw its hat into the ring.

The rise of 10 ‘-i to 140p took tbe shares well above Albemarle’s 130p a share offer and reflected a state- ment by Rhodia of France that it was “reviewing its options" with its advisers

Best and worst performing FTSE sectors

UfcHBftHOMS

-woo ;

Water

Uar Dec 1998

Mar

1 FT 30 INDEX !
	Mar 9	MX e	MB'S	Mar 4	Mb 3	Tr ago	■MBS	low
FT 30	37755	37709	37678	37423	372BJ	3682.1	40043	2790.6
on fry yield	2.74	2.75	2.78	2.78	280	2.98	422	2.72
P* ratio na	2313	2109	23 02	2282	22.63	23.78	S41	1550
P.^ ram n»	2106	23XC	22*.	22-76	2237	2157	25.19	35.71
n M rn rrrjuixo CijR 4CSJ9 7.3S3; b» JS4 STO44 0a» l/TTS
FT 3D boortr dHogss
9 10	11	12	13	14	15	IS	Ktfl	LOW
3.*n>9 37941	37792	37692	375*2	37W2	37E5	37795	3807D	37504

C FTSE ttETttarji UntoJ 1999 M n0m resow* fa 1SSOS&

1 STOCK MARKET TRAD/NG DATA
	liar 9	Mr 8	Mr S	Mar*	Mr 5	Yr ago
SEM Conjars	32.675	86.250	88.415	77.806	75.015	n'a
£S5t( >sbw»« Emit		-	-	3693*	39390	M
EauTf Urgxrst			-	612*6	61.523	nta
Sfares traded unit		-		925.7	562.7	n'a
Tea racket taaairst		86.122	85 917	76 W9	73 251
Icta) 0iroo*«r Emit		49672	5675-5	4904 7	48^0
Total stirs traded irp-t	■9977	1133.0	1263.9	11728	11712
Iradtpura lurrmti Emi	25.S	250	293	22.4	209	502
Traoopouq tir, raJeJnu	ia*	106	12.4	104	99	96
JLClCrc cOffjW 3U XI5CJ1 nroor tnB IKlU&a Cres> bM)	v* on =K « 6n	: if raa
taa-cnj^T anowy
■ London naifcet data

Rises and tattif		i 82«BtkMgtoaMM0WB j	i UFS &plty otfions
Tata fuses	880	> T«af H&K	84	Total ccniracts	33.826
Trial Fans	648	1 Total Lons	52	Crib	14^52
Same	1227			Puis	18.976

Mar 9 Uaa based cn Equity sftns tSKd or He London Share Settee.

following Monday’s recom- mended bid. Rhodia had been seen as a favourite to buy. It said it has bad pre- liminary discussions with A&W, but has not so far put forward any offer proposals.

British American Tobacco shed 15 to 557'/:p on heavy turnover of 12m shares after the group posted a decline in annual profits and warned that tbe current quarter would be unlikely to match last year's.

Martin Broughton, chair- man, said the difficult trad- ing conditions that had such a marked impact at tbe end of last year were persisting in the first quarter of 1999. BAT'S profit fell 16 per cent to £738m though this was largely due to a £61 3m charge related to tbe US legal settlement on claims for smoking-related diseases. Operating profit before exceptional*- was down only 3 per cent to £LS5bn.

Analysts were trimming profit numbers, with one of the most bearish pencilling in £l.l6bn for 1999.

WPP was the best per- former in the FTSE 100 with a rise of 21 L to 5461 5p. WestLB Panmure has been

highlighting the value gap between the stock and its main US competitors.

Barbour Index, the con- struction, health and safety data supplier, lifted 7 to 302'.ip on news of an acquisi- tion battle for the company. United News & Media and Emap are both reported to be in talks with Barbour. Havas of France is also rumoured to be interested.

United, which was earlier downgraded by Goldman Sachs, dipped I'i to 642:5p. Emap. which has an outside chance of joining the Footsie tomorrow, lifted 15 to £14.15.

Budget boosts Dixons

Electrical goods retailer Dixons Group moved strongly ahead after the chancellor of the exchequer unveiled new measures in the Budget to encourage computer use and informa- tion technolog;*' literacy. The shares closed up 50 at £12.62. Turnover reached 5.5m.

The commitment in the Budget to increase spending by schools on IT saw RM achieve a record high. It gained 46 to 625p.

Water stocks fell heavily after the chancellor raised the prospect of increased competition in the sector. Thames fell 47 to 98Sp. United Utilities 33 to 784: .-p and Severn Trent 37 to 552p.

Director share-buying and well-received figures helped Independent Insurance jump 30V- to 2S0p. Chief executive Michael Bright bought just

under 200.000 shares to take his holding to 6 per cent and deputy managing director Philip Condon bought 3SXJ00. The company announced a 22 per cent jump in under- writing profits.

London Forfaiting, the trade finance group whose share price was battered by a profit wanting in January, recovered 13 to 64 'rp foDow- ing speculation of a takeover at l20p a share.

Xycomed Amersbam rose 14 to 474p after an upgrade by Morgan Stanley Dean Witter on well-received fig- ures from tbe health care group on Monday. The US' broker increased its target on the shares from 525p to 60Gp. raised its earnings per share forecast from 2S.6p to 27.6p and reiterated its “strong buy".

Airports operator BAA fell as the Budget included an announcement that John Prescott, the deputy prime minister, would examine competition among UK air- ports.

The shares closed off 10* s at 695?. although one trans- port industry analyst said: “It is obviously a target because it is mostly a monopoly provider, but to break it up would be very difficult and it is already heavily regulated."

News in the Budget that the grvtrtment is to reduce tax os football pools to 17-5 per cent from 2S.5 per cent helped trigger interest in gamins and hotels ccmpany Ladbroke Group 2nd Zetters Group, the football pools and bingo clubs operator. The . former jumped 10L to300J,p with a big buyer said to have been active in the stock early in the day. while the latter added 7: = to 13ip.

Dealers were expecting strong buying today in the drinks sector after the chan- cellor left duty on alcoholic drinks unchanged. Bass rose 13V; to 900= :pr while Scottish &. Newcastle put on ll*a to 705:;p.

FUTURES AND OPTIONS

■ FTSE 100 MJEX FUTURES 118*3 FID par M into port

,4*

	Open	Sett pnee	OB9!	rtgn	LOW..
	62600	6243.0	*220	68000	81960	33709	.;i«0630:.
	63050	62&40	*220	6M20	5246.0	B1M	.■Vsr-l
SeB		633.0	+220			— flv'	■-m is-?.
■ F15E 2SD DCSC Funmes (UFm nc per Ml mn porn		.• ■.
ICx		53630	♦170			0- •	2299 .'

Jui 5372.0 +170 - B ’^357;

■ FTSE 100 EHDOC OPTBW OfFS rK37J £1P pn tuS toga paa

G0S0 Sim 8150 8209 6230 "8306 EDO

C ? C ? C P C P C P C P -C ' P . ‘c 7 -P

Kb SFi W6 «T> ISBh fiVi 121 Vi TO: Slfe IW> « 13 - l lST -l fe- IS

flp 331 12l'-293lj 7j5"t 2BJ iWf 231 175h2B2fc 137 Wh 7®j Ite, «B TO STO-i t\t 34S,+ 234> Wft 254 Wlh 273 257 23? 229 ’ 3« M2&.2S-

in 473 :« 4C XS «3 3T 383 306 33 325 33 » 365 UTft SC

set m air nr* ba so otj - -ws-ftp

CiSiSi* i£4i ■

m aao sms ctse ioo noa oenoa qjfre no co m wfen pnw

6075 6125 617$ 62= 6275 S32S 6375 MS;

Hit 208? £ 171’? 54 . • 13^ ?<T? 186 89 SI 114 5B«t R1> 41 1M 26V 3H-

tc 383": 124? 2654 Wt 236 lM'-BPl IRC: HU 317 158 227* IS 2S HRZ®

Co) 33T-J rr-: JSffr 2TT-C Slh 235* JSP-. SSh 7^- 241 39 2E 323 WiSf-

A3 QSr 271 369 308 Vfn 348 • S5 396

3er SWijSff-r 53815 <29 «!?4fi5'* • - ■4H$SW

I---; t »_s - Uu*ii,inrj ms «arue Pwkjee je hzM m aSAvkit CKK. '

; ext: wpi .- • -

LONDON RECENT ISSUESr E0UIT1ES

issue	AW	HO.	Ctee			-7
es*	V*-	03 198879	irt*	m	Qt	6s-
s	•S3	Em.i low Stock	a */■		an.	S«

_	■?	liO	1W	70 Qase eras De> 8CT	100		-
.	FF	633	103*?	98’ ■ BiUPCJd 73	U0-;		-	- V	_ _ j.; _ .
*	F?.	H5	i	7 Cjaferttpesfrs	7'»			.
5	c.:	r 7	W:	-twpew F -fewTFji	IDO	*1	-	-	. •_ _
5	f?	4*7	ItCl	103^ Oa Ten On Pit	tOT'r		- •
.	??	-	1®	25 bsrr ffaiaifc	27T:		- - .		a “
	??	598	HITS	tor tfSAOiuBisa	11D			"i. .
•-	ft	131	127	55 : tSnbi&flKl	115			V
-	«?	-	14?*	ts&pte	129	-8	-	-	-• r r»5

t Afe-are ^-.tgrai: tcanat § FUtovj pk- • MnSxtoi Ft? a Ummom 9l afl cao qnsx pkca

iv.'r S TSr L^S«I s»* StJW raa

awe 9	Araxd Vbi u*	1 JP41 Beram. tLftr	«gfl	1998299 low	Stock	OosiBS "■p*P	j<r_
■o	a	163	T -4SS	;pm	BJKOte	- lajm
t5	K	S3	6pm	7pm	Octod »■— n ■ .	■Tbom	-lil
78 .	rs	KW	25m	I3rr	FWJMe TTwaptcs		*2h

FTSE GOLD MINES INDEX

Mac cbg liar Tnr tan Intel 52 <

B on 6ri 5 890 jMM » raMW »gk

low

94126	10	91178 107904	155	’94823	1351 57 30158
10*708	IS	103151 103404	195	' 1064. ID	1*8804 76553
UMOO	00	110*72 1294®	2.74	•1WJB	1SD053 BOS3 '
88239	4J5	8*4.60 1080.95	052	885 38	1317.41 64758

FTSE Actuaries Share indices : ? .

Rtcc'jcw! in oorjancfon miffi '3* Foaiity art Insuute.p? Amcries '

	SO;	H».5	bsz	- 530	»er	Eros	m	IB	p.i u n	Ida
	IfcJ	ABS	Xti	•Jr 5	ago			aw	rate *d	Raton
RSE 100	€2rr	-05	72010	62 OSS	58285	255	227	192	2553 35.38	2777.70
Fra 250	5375.7		£125	53592	sma	HD	275	205	1950 20 a	2347.65
FTSE 250 ex inv Tr	JUTG6	*02	€2555	5397.5	53209	322	2.86	213	1821 19.51	237108
FTSE 3S0	3595	a	34195	3946.5	2788.7	253	255	1.95	2499 1596	289308
FTSE 350 ex imr Tr	3669	*0.4	34285	2954.	2,-914	254	296	196	24.15 16.02	138450
FISE 350 Msher TMd	2T®5		22235	2758.1	2782.?	359	11?	1.60	1993 18.15	2162.13
F1SE SO Lower Yield	31365	♦he	3824.4	siio:	2831.7	1.67	152	226	3397 1127	230655
FISE SodCap	2322.79	♦C.]	268V. 2	2315 76	2511.04	148	293	202	17.77 921	2059.98
FTSE SsdCap m tot Tr	22S9JJ3	*02	2646.01	228572	250150	169	112	21*	15 84 8.72	205350
FTSE JB-Shn	2881.13	*04	330652	23407S	2H564	367	2.37	195	2397 15.19	264204
FTSE AB- Stare ax Fur Tr	287252	*04	331938	2360.64	272258	359	299	197	2354 1593	1365.03
FTSE FtodgOng	126654	-0.4	146356	1261JS	1369 54	188	321	142	2269 451	1431.12
FTSE FMgteg B ftw Tr	127639	+03	1475.54	1273 £2	1391.16	4.43	356	1.47	19116 4.47	1451-23
Fra M-SmaB	131531	♦03	152052	7311.69	142250	357	299	158	1851 504	148959
FTSE AB-SmaB ex In? Tr	13225*	-02	152805	1319.75	144171	184	352	1.96	16.41 4.95	1508.10
FTSE AH	8405	-at	9710	839.7	10155	151	109 3a 001	0.12 099	76204
■ FTSE Actuaries Industry Sectors
	tag	031-S		£38	Ye*	Gras.	IW	Net	Pt U 84.	Into
	Karl	CJ^.	too	era	aoo	Vtoft	prtf*	tnrer	iteD fM	Urn
10 BESOURCESfiq	427051	♦♦3.1	493156	4364 31	455539	351	298	1.11	3393 20.05	200255
12 ExtrecSre hdustrtesfS	3155.66	*06	364657	313592	3328.63	405	177	201	1539 14.72	1022.84
15 Oa	4947.77	*02	5717.46	4940 76	499851	352	188	1.03	17.66 2115	238554
16 Of ErotanffCTi S P roSSt	1514.78	-15	1750.43	153849	331950	358	121	0.17	80 DOT 7.97	953.61
20 GSi MJUSTRJALST189)	19*810	*0.4	2251.16	19*00)	2171.48	356	353	233	1494 11 18	11735!
21 CtmteucltaOn	141952	*01	10*035	141836	1544.31	14B	196	224	11.11 6.10	129058
22 B0«ng ttefc 4 MerdHf?31	1689.46	*01	79SZ28	T637-J2T	139526	440	392	216	1313 042	94254
23 Qwntofcfiffl	192568	*04	222524	191821	28C605	459	4.76	151	1551 35.79	102024
24 Kwrafced W«trt*<4l	1010.01	-05	1167.13	’01S.49	147861	6A9	s.n	108	U86 526	64425
25 Becunric & Bed Eqiipf29	3012.12	*05	34KLffl	2996.07	2342.75	2.54	2.17	200	2456 16.02	169755
26 6v«ering\|53»	2*5450	♦0.7	2835.99	243052	2333.48	3 42	308	23B	1597 11.14	162321
27 EngJnewtog. VeHdespOl	4434.79	-03	5113.12	4438.32	390J.49	309	193	440	1358 3.72	2467.73
28 Paw. Priin 8 Pi***jfl71	1692.12	*09	ira56	1677.60	220657	BV	592	226	6.74 25.92	793 86
30 (XKGlWm GOOOS4B1)	6109J7	*05	706022	6074.20	584856	Z 22	2.09	190	29.61 2899	2*5550
32 tod* 8e>raaae3(a	3900.74	-15	450755	J948J3S	1851.74	117	296	213	18.54 034	156388
33 Food ProfflJC8re<2Bj	3*76.41		401721	3475.22	3882.41	255	241	214	2204 1692	171208
34 HouseteU Goads 8 TkMI31	218037	-25	251955	2244 03	3346 48	458	4.33	2.00	1335 505	93806
X Healti CbtecM}	252222	*05	2914.58	2500.®	231055	112	190	136	29.71 296	163051
37 RiBTTHcajOcfiteCffl	11042.71	*15 1276054 10875.78 1003350	150	1.54	101	43 31 71.49	4005.50
38 Tr*acctt31	719*51	-2J	831321	7365.19	53 7050	444	4.17	1.46	1938 aoo	204999
40 S51VBB(2S1)	39*4.40	*0 7	4558.00	391820	319755	2.16	1.81	211	27.47 7 58	219858
*1 BsrtU8K<2S)	193551	*05	224754	1922 18	2740J2	4.71	407	206	1292 171	78008
42 15SR S Hofefsdi	3837^1	+2.0	450369	3822.35	366750	236	2.13	303	1827 2437	224119
43 Mo»49	545056	*05	6298.49	540172	4366J0	1.85	154	216	3142 7.72	2086.41
44 Beoliens. Faodfl3)	24365b	-05	2816.07	244523	288156	174	101	2.16	1546 4.47	168144
45 HetofBB. General)	2358 75		<72569	Z358S5	2365 81	117	255	207	10.02 599	148346
46 Ta*eaxTmrtcat)ons(71	6322.76	*07	730654	6277 20	338253	1.42	1.16	1 64	5158 401
47 Bra^rtre. Pits 8 h est<S2i	3808.72	♦05	M0127	3785.78	3866.42	301	2.68	220	1730 1556	138560
48 Stwffll S€»i*»a(Ba)	51B225	+16	589957	509923	432925	1.19	1.07	286	3602 343
49 TraspcdCSl	353951	-06	4746 36	361227	3290.13	289	24«	1.90	2150 1257	1626.76
60 UTBIUBIZI])	385354	-13	44 52. BE	390360	3612.96	403	349	104	1656 1151	1880.19
62 Beetrfc87(7)	4298.44	-15	4967.12	<35051	4057+6	4.49	3.71	101	27 34 964
64 Gas DBtrtteflona	316756	*06	3660 44	314830	271753	199	1.77	271	2130 aoo
S3 waaniil	313636	-IS	362458	324883	317183	135	493	235	994 24.10	199198
69 Rf»F«HlEUU5(a8»	290250	*04	335344	289a 03	268072	2.83	233	1.91	2459 1032
70 FWWHClALS(ia0)	5578.77	*04	644663	555551	5705JT1	285	2.57	2.13	2057 5951
71 Barts. Retain 2)	660950	♦05	3948.24	J564.79	528139	255	254	223
73 maiwxsci)	236152	—05	273953	367.17	273303	291	277	206	ram 1001
74 Life fiesnrcUBi	7DI358	+05	370455	70O2.5S	746703	270	256	195	23.71 11.74
77 rate Ftoanctefri)	412152	*0)	4763.02	411934	4547.74	250	22S	2J0	2168 9 27
79 f»T»erM48)	190598	+16	2202 4S	1676.51	2360 40	393	288	1.68	22 41 657	1274 77
SO HVESTHBIT TRUSisnin	3621.42	*1.1	*41563	377920	3800.76	221	1.85	1.16	49.00 1635
89 FISE M-Share(82E)	2861.13	*0.4	330652	2848.79	271554	2.87	237	195	2397 15.19
105 FTSE M Shaw nr tor TrflTH	287252	*04	3379 38	2360.64		259	3 39	197	216* 1503
tatonnteai Terinctoei	1*33.73	+14	211669	1808.72	137953	□50	□ 44	403	SI 85 144	184409
■ Hourty movements
9XO	moo iim	1200	1100	1400	1500	16.10	t60UfeT ItoBMqi

**3i3i

Ai^aca-a; firexss 111

W» AintFuimed Rgws fr pmctefc tew H d ramiaW . tesS tcteft Beat vatop 1000 Kl 31*72% 7 ParttS Lata pncs utn gnmaUte to W KHu ■

The UK Series II TRADING VOLUME

■ Major Stocks yesterday. . [/

W CtosDg Oafs ■

pan uten - jgo

I .

3	»	£23.	-SB
4MK3C4P	1CJ	SB	*2
	him	t*?	-1
Mov? Rum	I.BB	W4	*rt
Mmntna	ya	74ft	*14
Hima	1.485	«*?«	-4R
toOfeKK	8375	9G0 ‘	-n
	l.WB	719	• -J8
An octet Maa	rro	451.	••
«A	10B	684-	-H»

aoc

V hm B»«B 81

BTH SM>

Mo (SoM

Bman

BMdr

bmoew

BM fimvUM emntawHs at ter Tdnxn BOW.tww a** urei ecu

C0L1 Twin**

on*»s tumna GntaJCMmo.

emu

Cumm

OWTtMSEn

DVOK

FMgatUi l r <Mm Bnmc

Gtos Mm

nan

17S6*

Utt

10207

7ia?5

IXB

24JC

1OT

wan

vsn

U*7

SJW

ia«i

12J96

-e*

♦r* *1lu

Bffll

1071 2T9B »12 1164 .

•U* +W . U -25

WHf. *1» UM *4»- 3a «w 9xm -<* U» "-R 4IB -9

43m • si*-, -is

W rW

■ai .« an -io

xx.<n**a

HSBCMSIO

“woiltas

uann L ®*fS6arttac

Uottdwm

IM*TW

Kuoltoai

wmtn

mom

FISE 100	62205		6243.8	62291	6207 7	6210.0	62150	62375	62873	6196.9
FISE 250	53605	5365.3	53690	^695	53716	53700	53700	53740	5378.3	5360.6
FT2 35Q	29514	29713	2954.4	29SS6	29472	29480	SHU	2K83	7978*	29431
FTSE SmaJCap	23Z045	2321 19	2321 08	23:i,06	232150	2322.46	232132	232254	2322.85	2316.63
FTSEM-Stan	285146	2871 87	2S62.79	285741	2849.68	285048	285205	286093	2878*40	284594

Tlmr nsc * Stol WfS hlQfr Da/B br 13 J9VQ FT» fiff-SKn I33&/39 X*jr Z8S5 ?0 (WI7W L0K 71K07 K&U/JQ

Furttar MsmMta 6 natttt on «St/iWwwnsccom.

,99a- « RWurmenw ’FT-ST and mnae are moe m arte <* 6" Wnto S»*fc Estangr and The Ehanaal Times wd *b useJ m ns£ irtemsmnd mdflf teartce. t S P/E rams ytsset Don 60 n nol Jnrm. ; l'3w=e sre ne^fave.

NoiMmflbtt

*MAM»

fanw

"Id

ISMBat

■hcMISOgha

■cMM

Ho Trto

RnhFBia

HW4 8a* Sconnl Samar

sonata iw iawltacaA

San ran imtn

Cm* Ml

StoOrt OatVBl toiitiatRO HMMCm TcX0

nawnt inn inn >i

lU-matlM*

iaw ).«»

no ia» . -43

laid 1MB-: -st

tsro ss -syi

2313 .. 8® -1

ijasr 63*

837 tIBKr

317? 749^ -4H

101 3W .13

ujfo a« -oh

MBS ■ 1X8 -9

23 4« .9

U21 282

5834 5®: -*

Z.9S 414U -IS**

1E48 IW *4

ZSa 1293* *47

U17 7K -3*

JB -St 1JM *Bi*. ■ -8

3*8 IMS *36

U9 IS® -36

•JSC ’ ' 788 *rt

2.IW 340 -3

1781 8H4 •ar.

ts« Wl -9

HE 718* -»

2J10 TV

UM 3001* -W.

i.*7i m -J*

UH 7MH -4

8JC7 »ir» .2

is?*

10.109 330 -8

2JM0 1705 -8

10 JOS 4WH *8

1X3 «Ti . -1

1J1B 518 -’

ista *52- -r»

147? 887 -W

IJ» UZ -?

1.073 «1

1 737 7301 -14

4.141 e?iy -4-

uir laoo *n

317 788

5TS -S'* lure nw* -in.

•JOB SB re -T

3JS! UM -7*1

EJ45 .31* *1«

ts» sost* -wu

U» 1238 -ini

5*47 341*1 . -1

5.704 3si-. -ia

144 1270 -4

33 HUB -4

Z8U 7US*i -111*

tHB 55S -18

545*1 -2B* 871 SB? -It,

1-750 ac . -if

3J43B 387V *u

V864 III

887 1008 • -8

1*7 ZIP i -Ci

1426 981 H .325

U580 -I

4J3« J7B -8*.

21513 187*. -.JU

‘«8 fU -47

6fl*8 3DF* -JW

7.7*0 (ISM .J*i

•*J4 MTV. -IB

■ SB IB4I| -J3

8421 Hit

2.728 S48*> .71’.

<LH30 m -4

S«e JSt'4 *4r

t»O0 401

25® ffii7 .37

'-'O’- •-

* »

MBM|ai»Bhn8 100 monies naans mb* <m ito I Mooi a FIJE 1« Mb mb. « M amiamiWwiraHUniM

i r ;s^V

■

spirit? Wi

^s%ses!

*£..♦+

SSrSSri.

tetcu>-_ .

t-..-.-:>3L: -*- f

* -;

3= ---. W-

»■ -.V

,n\« .

V.-i Te >.. •

{ '*";-»■ '■»

*>•

5fi<Sr

-■ f

“•i4uSr,.v,~ ■* ‘ ■

I: :+.

i£- ■■.■:■■

$-. *•

i*.- ;. . ’-

£•- •• A

FINANCIAL TIMES WEDNESDAY MARCH ,0 |«» *

!Hl^A.^..*o™...on_a_52 week basis WORLD STOCK MARKETS

J*» 1— YM

EUROPE (EMU) Prices in €

jam (liars) 1 € a 13 nsosj a*

A*»

AT**

BWT

RemC

fonts

i»« nj k

13® -1221001052 X2 .. Fteipr

I ^SS^s’Baar

*«■ lam no PS

►/- ma 1* m ps

« 1- H* Lp» tm ps

»/- Ht* La* na we

Loaf W PS

>1- If 1— tm HE W

♦ /- man u*

jg ob ’8 3*1188 aSs 5s

I^klL“ll^| -HUfe

m t.ttSmSS57aa |S&! 68 ♦SSSSSSafti 55*

JSL t1-SJ3H?“ss5 i.«wl sSta8 «g -ireaijsstao 15 at S?1

t. ■?«—* *-20 KUK 3528 2.6 sS 5X50 61 3537 30 239 ?5“L

I ££ 1:1 aHIS?1!1 is* ^*»33*8~ §£•

aauUn

EAGTO

EVH

Enflk

bqkui

ssr

31.18 +J8 2X71 16140 ” ‘ S5JL ,«* +.]l*j§ 1019 10 lift 4J -JO 71 J8 23.43 30 ini SSf? }®J® -2® 229 6065 20 55?

2 *1# J«JK »»§ 1! 1« IS2L. ,sai? -HS M 13^ E5&

LtaftB

lHIte

WAS

«a

tew

aa« ...

4UD — JQ frYte! *~ in 23 - 10 r.11K iq 74 ■l’n In'? fPV5?

W*» -I-SOwzXtoSdb &1 §5b¥ »■-»*«■ IWlijS] »

»~5 *205030 10.30 4ft f~l ?2E? ^JS -,iS ^MraMeoiwe pC?

Man 5 T.l lam M9 +9 _75B SZUB 0.6 HfJ _

PieoiFn RASRi

28.40 _. 33« ZJ no Vfl 41 ' l¥*? *® *8 730 8Bj| n« »> JJF*

s-:sggsis;ii?j =iS-,j3Krfg;i;jj g»j

.sn '“ssiHss^ ® isss*:ssssassi £?

)££", _T8 *3.10 ICO 70 54 90 13^8 Hu o,

“w^-wwh w mis ^ssss rgsis i!

144

1J0

056 JO 55 ooi 13 W 3D6 149 250

’ifi

4 41

968

1J3

&4j

11^0

351 0 71

*.07 390 1 16 » i _ BArud *03 200 lr* 6 1 6 7 BUnl -«2 T 44 (I4C .. OW -.06 7.36 385 . 11) * BCH

* 04 090 0 44 1 8 33.4 BPri*

04. TO 6 BS*B *“ 1TC 0 40 U 15.4 fimin *90 271)6 852 JO „ 1 »«

* 06 5 73 3J3 24 H7 Lmki

* “ J?1 **2 « 8.9 C&Bto

*03 374 T55 1.4 xi 7 ertsa *.35 >1.33 5.71 07 755 I*n *10 5.B 7TO24 3H On, -0G 560 349 1.5 ._ Bte -31 13SS 496 1.2*74 &** 1 10 35 103 trtwe

3535 -30 56 60 3106 35 134 3730 .. 38.44 33^8 1 2 320

1306 -06 1883 7 7H 1.2 432 1133 *26 12.04 6.67 1 0 14 4 5940 -20 83 70 44.47 23 82J 18 25.77 10.70 1 6 36.1

3402 *.14 3603 21.10 2 1 108 3230 -75 36^4 24 04 24)227 27.12 — 20 3324 18 66 0-7 42.3 aa -JB121C 6.91 as - 4718 *1 Si 82.45 »97 24 99 l5-« ... 17a 10J4 ... —

34 * 20 374)5 1844 1J 317 37.46 ... 42.07 28377 IB 23 7

2388 *21 25 96 15.96 1 5 24 8 2415 -55 76 1623 2 4NJ

'S-Si S-;! 13 fflmcoc pi 50 -m 75 a.« w 43.7

1***3 G*ttf 8880 -68(021544 17 04 6/ J

maua

Mk!

Mil

B6M48

388 safswn

*,c * a>»»

g -*SSgS8.||?^ ««W Oto 911^155583 Dm. ^ tlS-5049-83 ■■* 5W

1 jig l"j z kS*1 !^2 -St,™17 14K 4.2 im

Btfcrt

ijbto -idyn5iiri*r ia»* n— ^ oo^rs ~ ' 7 tm

1JS30 -45 1929 1.4Z 2.7 ai ggl “ 3041 51.13 1.7 _ TW Sr

27£WK4»oiaj SSE. g ■'-5P TOOS 1^305 re c&pa

™“ 348 11 157 JSSi _~5 }»73 B4 10 21.1 TMcm

m ..

301.70 -8 C8KJO 80S -t OB 32JTI

E2-50 _ 8U0 47il6 2Ji 89

4.12 7.14 132 S4 ... S&’

GEL8*

M 70

nmu

IOC

rasiiiwsja ^3 2H BoSaiiknal

- 75J5 3069 01 it 5£f^ ® "5 '«S2 70 1 1 17.7 Toitfr

- K>Sfl *7™ ii, lg ^ "2 ?? ^ I"**®

7.14 332 SJ 5tS" *2 8017 4ES3 1.7 20 4 TodAs

Ml -18 7*5 V«SC o_K ”■ M f! S •- 4801 ^09 3 3 11.8 UniOd

450 -4 mi? aas7 03 ai5 '^3 --4017*6121734 .. iwcm

2TB -22Q BSL £5 *I11»47«R 1.4 3f4 Unm

Sim -asai^OKL* OA«i iSS! ,*S i=S»S7ai2i 2J 1Z.| UmonR 137 JO -3 MCLM 120 0 7 So £*B « - 95 Unttimb

..ssffigs as & s* -;ps«8 as .sl-isisiasIS ,5 j: :|»assas H aisaag^gi asL, sg JSJSI^”5 ^ ™

WS “,-5Q !®60 MJO £4 27 7 BurtraJ t|q m on :v .4 ; A£f»*f 9280 -1 15 111 A 56 13 11411

*1-89 0 7 8.1 CmiS sjn -IS asm io2^ ?n !H 'S!10 1745 *50*608 8 68 .. . MC A 120 -4 70 170

59J5 _. 37.1 Drlfflfc 15 19 m2 n -» 87.58 52.18 2J 22J Pan a 185 »M

4151 1.) 28.0 SrSJ 20M *i^V«MKi7»S AhBid 3255 - 95 36J0 22.96 1.1 CartA 297-270 515

msmou dbubi r» K 1SS u ,s* *ho " -.lEESsaaj? 1913s c»b mojj -&rr sa

335 ..otft? KS»7 AlreKV 104 20 *J01««H5*51 CnimB 98-1419 181

♦ J51601 879 1 0 375 Gasupi *01 150 <172 22 68 cSrf

. 1 06 059 4 3 5.4 MTm

-.07 as 1 a * X*

*0.1 2» 1 n 33 « no^

-05 369 1TO 24 193 mS- .. 1 19 U38 .. _ MBW9

... I!J2 5^?30l£fl eSn *23 16.76 7 75 1 8 226 Pivi ... 1097 7.13 1 4 430 PUm ♦.IS 2SJ1 14.46 25 25J5 SSS -15W* 840 1 0 38 1 SWCE

♦ 06 9 30 lib 20 17 1 saiQr *rc DOS 04J 20 617 GoOW

.... 617 2415 24 127 TabscA - «7It« 932 _ .. TBfeto

-03 135 OMISJ .. tSw .. 095 027 H3 TuSao -IS 668 380 48 161 uiton *03 1M 09: J S 17 4 Unn ♦4* 5AS ISO 51 05 WCan *J4 7J0 * 15 0 7 65 S Mm .. ♦ 10 457 2 40H362 Wa*i 5 86 - I lb 5.96 '16 1.7 27 1 2m n 9 75 * 20 1008 43S 10 54.6

ll Ss! fig || EUROPE (NOM-EMU)

IJS -401066 981 18 17.7 CZECH US' IM» 9/ KlMH)

488 .US B 11 7 B7 IJS6.7 191 -.08 4® 1 0 40.7

fftJ5 -.20 12.14 5.43 14)35.* OaSOo ■I JO .00 6» 26S 2914 6 Cm 0J3 . -use as .. , bp

MttBi*

TSM

9» 7 41 2295 10 6S 4.79 OSl

2J8

15J5 I '9

090

555

I 24

155

6»

15J

87 40 641 44 06 13 M 3050 13.15 26 3SS( 20 08 052 4726 193 17 60 34 02 1967 41.92 690 ■ 67 1510 90S 1140 10 77 77 63 38.10

90 91 95 61 90 19 1S.5 -.11 1304 £-a 28 32.1 —26 54-11 J5.18 IS _ *43 1815 1792

- 03 77 45 27 71 10 28.0 -.56 393 li03 2.1 1BJ

. 29 82 1705 10 _

- 59 <5.m 24 04 w as -.13 27 05 14 48 <6 291

-01 U91 a» _ .

♦.49 5300 34 J6 2.1 18? -m 2 as 1 is . »j ♦ 07H354 es is ... *34 4088 1941 06 _ -04 2494 1653 1.4 7.0 1.32 47.20 2655 t.l 362 -X 111: 170 ._ „

- 04 "298 192 . 14.7

*.15 IBM as 1.7 320 -95 14.18 601 20 S 9 *■33 13—3 U0 I 4 371 -13 1390 8S 48 289 -12 4579 1623 01 _

- OS 33.44 21.04 10 6 3

-4 285 140

-1 » a?

-! 276 (83 -50 260 140 *2 128 S3 -4 50 122 52

... JQ1S 57 -jsiaus 78 8606 *4

-150 9186 48

... IS 59 -1 1«3 61

151 76

-1 175 *7

152 73

-50 75 38 50

*1 182 40

-ISO 294 140 *2 IS 85 _. 371 180

295 145

i7 17.3 34 63 40 79 49 11 5J 28 19 15-3

23 H I ... 51.9 1.4 96 13 101 57 56 4.7 1 JQ 1 5 381 29 144 10 .... .. 159

oia’a

51 296

24 38 26 3 7

6SNV1 S3 ,2 257 87 . 182

BTiM* 1 4LQ rl8 1.70) 071 04 -

aiWfTl I860 -33 2240 1 461 04 409

Br^» 23150 —^1 3440 2060 0 5 211

BHW» 355 *2 560 267 1 4 127

CSs 2 200 .. 1550 1990 tt4 ..

Cope 549W -e DM 395 09 430

Caenc TB *2 »9 272 22 19f Cam 2.6500 *95HM1.«) 06S1B Cawis 1.7400 -8 1.999 1.535 10 «4

Ca*C *22 *14 1056 HI 15 195 CorfV, ^ -1 £52 170 2.3 SB

QBl6« 218 -14 310 170 2J1BJ

Cnupft EIT^OQ -lira ■SBBE J6Ma 1)9 417

IHBB0 — "

478

BtwM 274 CMyPM 410 OlOf 2.180 ChgRm 1 180 QugfPi 1.912 CnuoTB 599

PttA» (Mar 9/Zkffl

awtvy 3700 *1 JO 75 a 10 37 ij BHtat 43.00 * 00 -64 31 - -

BKB» 75 *5 1175190 40 00

Mm MX *.*0 54.50 27 06504

mm 3010 tJBO 40 33 ..170

lUrt 1530 -X 34 ID 14 60 . 112 IKPW 2X90 *1J0-77J6 1555 . .

wr 2140 tioroso « 7.712.4

Men* 1180 20X1160 - 4 B

Zyntac 429 *4 545 314 50 06 340

SWEDEN fffer &/ Krona)

cww

CMIU4

cretK

D'cdC

I9HD5

[Qta

Da*U

Oil KB

oar

EU6X1 Dai vo OTTVffll

DUpr*

D3MFI1

DaJMPr

CHplot

OOMaf

DKMU

Cnawia

Damn

OtMtS

807

336

276

e»

7G4

1.839

10M

134

515m

473

364

183

1.324

543

03 *008 14680 5956 1(0 1.7 44 45 -J7 97 48 3808 — U 84 180 78 9 5 68

305 *1990 1.260 71160 71jQ 11 7,451 -46 0.900 6 000 11 £ 12.7

<Mar9/Kfl

SoAi

SoMa

some

1X8

-.7580 41.89 07 81

B7.85

I - —

aiatffliE

pf J

JUS** ’US -reiBajoaxso i3^f SSS

Jl* ■' -54-70 7B83 00 610 SSp 2S70 -JO 70.86 26X 2.9 £0 &5S?

.... 680TC

at**

TOWA 1X05 am da 1400 Cuan T7J5 0*2 1722

Hr Of A 5

Foil 25.70 M(K 1547 Mtl 31.75 HiMK 31 75

1100 * 80 24.29 10 00 14 128 Q^Sf

31 TO -l»OS265fi20ia« SSl

24JO ...HX7 21.47 3? . SSw

267 -9-4A4OTO 27 ... UMr™

113 -4 19*29 112 a? 25.9

ire ^ 175 15053 5,3 ...

722 -08 1808 635 4J? 7.4 2080 _ 41.57 19 50 14 9.0

19 — 40 34K 1505 *0 116 4700 -&168 4602 14 241

_. 1540 11 IS 1.4 S.7 -. 465 30217 10 34.1 1 JO 335*3 3K76 4.4 1X9 ...3U3L71 26 27 9

RLMD (Msr 9 1 € S 554573 Mka

GEA pta ESC

-JD 20.1ft 700 10 .. 6mnm4

-.18 2055 1107 44 114 0*01 450

+05 2062 649 14 OcftPI 243

+0220.17 538 14 HortiB 2250

— 1001 444 7 6 45 H»N«4 7900 *1 a *131 *0 7363 22 <82

-10KL57 2465 65 55 «art»m 2*3 ... 55 £5 72T<1 14 21.3

-- 22M 14.20 24 20.1 Ht«m 57.75 -22S 9203 5349 1.0 130

-05 SB 87 34.39 32 \7A *700* *40 TUf 20 (Xl

-.5651 2375 X2 12* 7255 *45 9510 5X68 1.2 IX*

urn 1900 +2X8231 M50 2 0 400 Hrlb* 2*40 -.77 46 2050 -622

Kcwia 5H -05 10 64 521 52 02 HortS 3110 *.10 4653 2045 20 27.0

mto lire -X 16.40 1043 <3 130 HTIW 4100 *48-49.49 2540 1.11X3

KmS 92J4M1 +0014632 7499 1017 0 l*™*! 124X +200 285.14 7435 _

Koncm 20 5348 27 24 14 3 >K»Bak 24 -2 4806 23 34 100

5J3 +05 668 348 3X162 Wom 121 -.12527117X34X3

+00 3280 724? 18 444 TO -"

*25 XX 12.78 14 467 *10 10J6 5® 4* 64 WJW *04 1040 406 4 4 90

102 24 63

171 2.7 7.4

790 1.3 1 1 6 255 10114

. ... 86 10 114

*.05 4903 6.75 — _ CbHm 73 -20 9J78D 719 IB 0.7 180

2? !*-** a«s *.? aa ctm n 728 -2 i.*» mu 79

<6J5 -45 23 M 1615 3 7 lit) Octal 710 .. 785 545 04 321

4660 * ID 54.32 »9 1 20 18J Svt» 47000 . 54.600 ISAM 0.1 202

1475 -241JXaittQM 15 .. [USl» *1UX -873 7101! 0 1 21 1

52 -2SB3093T.21 21X8 IVSlta 298 -2 BOO 2* 60 26

7550 -40 1(0 JI 62.62 62 63 KSw 57.000-1000 1U80 51250 05 ... 37.TO *055409 3075 3.7 298 DSS<8 61000 -5rt) SUM 52500 0 1 _

5® -35 1997 440 90 .. Ontam 318 -4 525 297 1.9 157

1385 -06 17.33 904 3)224 Dcr2-U 710 -25 975 671) 24 90

3515 -.10 39 75 1860 15 281 EMaf 43 9870 38 _ ..

41.85 -.65 5804 2809 4 9 62 H0B 139 -4 221 115 2 9113

38*5 .85 5401 25*0 as US Hkt 47800-11 50 550 344 00 336

Rockwell

ra.50 (kntao 1)150 HSMB 827 Hra0 134 SO rffOsA ffi.W fr»ta»A 123 IimU 13700 kn«8 347 Nm* 171 Unt8 108 WafeBX 32fi

MX* 71 MX B 73

SwSS?

MstaA

2000

2025

665

644

HrcAftA 2J4 *04 184 182 ” ~ *J5a 1X40 *241

13300

OrVIttA 2010 omtiB Ta7o OBanoA 033 Pwtefc 941 MM 57 RaMK 6 BarGrp 543 Rtadsa 1090 »UlK 665 SanpoA 29 70 Sown 15JS sax*m 21 SftMM 15.75 S&KA 815 SSnsfl 840 Taoro 345 LPiOCym 24.18

18.50 45 50 1620 1670

11.50 1Z765

311

VMka.

— ix 44.74 0 7 720 ♦JO 13550 4249 67 71.6 KMCh -10 31 79 1677 54 166 Kronl -.10 JI.K 1548 54 163 nacftW +41 KJl 6J7 14 _. ttwft +41 17.16 643 62 11.1 KiuppF

+16050 26.41 14 26 4 Iniff « .... 18 470 10X4 India 305

-461616 6X 10374 Wh 2650

_ XI ft 641 60 74 LK»

-X 610 *39 44 80 IMMi*

+X 5201 1944 2.7 113 -05 17® OX 00 44.1 -1X5 30 7B 1780 2.4 244 + ® 24 30 1245 3J 186 -33 1177 640 4JX8

- 10 11.06 630 4 1 340 MUftg*

_ 7.40 436 60 130

. . +.13 29JB1B02 4 5 63 M«roi

OOP -.19 1716 607 60 60 601 — Oil OOI ... 03

MANi

IWIPt

♦ SO 204r I6JI 30 214 *1 *920 27 61 14 310

-00 2346 1240 03 124 -40-3441 15 _ _

-.40 1X43 9.51 10 206

♦ 45 13630 8040 .. 12.1 *1 £2ii 30i£6 3 6 _..

32450 -65050674 32S 14X0 essp +7.40 75.93 3058 - 1X5 17 -.50 3X23 1400 40 94 1X30 —2.70 1X29 95.10 4.3 64 + 4851403800 20171 +5 312*0 245 42 10 54 J *X 34X77.10 2817J +3 70202 41181 23 19" -6314 1X70 24 17.1 -054LII 20.60 30 71.8 -45X63 14X 48 .

■ 1.80 U?JB56l2Z OS _

488

1610

zun

11680

450

30.70

,£|?

pres? 2010 +

506M 460 X4X0 * 60 43.41 28X 21 14.1 -.10 22.19 697 10 130 +.10 7630 4107 1 J 389 .. 46X2665 34 270

(BAMCE (Iter 9J 1 £ s 655B57 Tn

h3»

ABF SOU *90 60X4240 10240 KK*. teSf 220 60 +i1D 272.10 U7X 14 34.1 SSriaT

Cl+Hti 16 m -» 143S 1610 _ _ !S,I*0SB

16811640 10210

hm1'™

-2513) MKJQ .. 204

Aafrn

ABUq

Mem 116 -1.10 217

Atatan 2240 *20

Ato»f 1 6690 -680 -aiJB hibji .. i w> *js

An 11600 -I 136508300 1.231.2 sjp

BK 47 iW -X 77.75 4100 10 345 S5,

BMP 77 M -1

Bongm S0 10 -X40

BWLK 239 -X30

103121 1.4 170 :: 335*1 20 165 « 1Z7JB 1.1 513 »XB7 10 767

1 17480 84 DJ _

664+330 689 485X 0.7 44.1 Bin -1.10 9XSD 57.15 14 40.2

-3002036 1572: 03®.!

*51*41 700 00

—010 *1101)142697145 0421.5 004 +X 13L91 7 48 61 2X7 457 *1 485 2329 1 7 27 7

47 -2X 55 48 3650 22 163 1436 .— 2685 10.74 0 7 55.0

3760 +.60 57J)l 36» 2.3204 2S *10 43 23.0S 30 130

215 „ 26132 214 30

21 -X 3121 1802 1 B 116 1645 *.05 2Sl50 1155 20 104 6541 — 18893 60.10 _ _

141. ID -X90 18710 1I7X 12167 260-1750 KSJS 2S7 06 57.4 300 -18 87748 297 0 5 662

390D +407161137 50 78

aasa,M

+3 13156 6050 12 17 7 +4 IX 60 i? 17 7 .1 140 t& 28 711 *2 1X50 83 28704

-3 256 122 34 265 -2.60 IBS 11S12 2Z5 *350 168 111 17 22*. -8 257 147 2£ 166 -ft 255 14550 22 16 5 +3 <35 184 0 1

-40 57 1640 14

_ SlB 95 24 160 *140 322 140 2 7 ..

+ 1 -79 5040 39 17 7

+ 40 167 87 50 10 .

-X50 779 M 1354* 0 9X1 268 MIX 10 MB +1 18750 90 4 3 7 2

_ 195 97 41 7 4

-11 560 365 . _

-X 26440 5050 3 7 14J *40 14740 64 50 1 4 SO *140 14)40 65 1.4 21

*50 1 J7 17C 25 ZZZ

-6 777 385 06567 ♦ 40 21 10 101 4u 15 19.7 -.10 34 TO X 3 1 180 -7 153 88 37 9 6

+300 47943 756 33 *450 481 260 X2 _.

134 4 0 1 40 >45191 63 57 3 5 14.2 57 J 4 1X6 176 .

X 33 17 0 70 32 119 +1 2*0 144 18 >00 ‘ 240 141 19 9ft

77 1 7 _

70 1 6 ._ 65 5 4 102 .„ 65 54 10.1

254 12000 4 3 200 *00 25a1 128 4J 1X9 JM 1® 40 182 +44(1 256 1X30 191

+6 263 1300(1 XO 10.4 —3 343 162 5.0 15ft -40 140 6240 0.6 750 „ IClSD 5640 15 115 -00 11150 62 06 503

+3 3lb 1» 4.4 113 -2 397 245 12 110 -2 201 98 19 10 1

-640 372 219 16 10.1 -30 31 2140 4 1 1X8

-4 X? 205 Z2 Xl -2 210 150 3.1 144

*2 168 BO 4.6 160

*50 17450 57 17 170

-400 374 146 18 14 7 -4 50 283 15150 18 160

. f Dcnup 2740a

6Ma 127 enSDd jflSM LiaGrui 270« GUIBC 214 GunmBfc 918 Gurce 258 HjcMt 964

SSI s

Mem

KJIP#

HdMd

456

342

482

Rockwell's coll cenfce fechnoJogy is helping business boom at Grattan, a top UK mail-order company.

htlp://www.rockwd!.com

fVter9 / Fro.)

*87 2001 1.150 1217.8 ♦12 f 29 240 12 X4 -5 802 345 1.0*2 +112018 1020 ...180 -60X168 1085 04 _ +11 4S6 137 -- 60 +20 1 565 715 14109

. 906 SW XB xa

IK +200 312 148 08 30J 960 — 1.190 900 10 111

100 -1 21475 9600 -

705 +13 1JC4 540 10 2*3 253 +10 385 138 iO 190

966 *15 9.200 6000 .. 102

BIS -24 3000 450 1 1 09 507 +11 -664 332 2014 6

607 +2 000 430 XI 21.7

«7 *7 101* 715 23 123

♦02,168 1JOO I J .. + 50 436 241J3 T.l 21 0

81'. _

1411 +.16

3&JU -1541.74 1702

26 177 7.7 24-

*/- *84 Lon 714 Tit

19.40 -120X27 17 J5 3 0 114 GUM 2630 -004785 142S 17 110 &SA - +.® 57X3007 0.7 X 8 B5 8*

+ 10X92 B 74 5.4 tosrf ..4774 1974 04 X7 mstrel

*.«5XBX®31 94 rjpo

27 . . 57 72 36X XT 11.1 **eau

4010 -JO 73.47 31 01 21236 KirSq 300ft — 50.09 25 53 - _ titeS

17 - 35031475 4J aO MtK8

2530 - 40 4*06 T> 55 5 4 ‘.3 »8CTAS 41.15 -I 7; 54 35 7<S: XT 2CI J/SfrE

*1- Mr !*■» M

210 . 271 137 1.1 340

*00 ... 450 27B <31

424 *4 4» 275 ...45.7

2!0 -6.13 372 (10 (1 >4 MS -5 850 466 J6 62

290 -701 4T 285 52 7.3 630 -M E2.’3 *5 192

-50 801 82 265

-3 600

1^70

ZWitap

ftacu

Qce 008 PakhOT

PWB

14110 g?°a , - ^ 24 ;,1 (Unco 112.70 l J 31.0 Ftonmoo*22.re

2j name 97

Bora* 6130 HDutef; *2.75 SOndl 1703 TOtPS

7P3S _ 58 =~.*5 : 1 . F=apr

lues 917*0 115 S*ac5

-if ax HJ7 as r + ?4tiA

<50

165

138

335

i ir

680 121S8 110 25 9.6 «W 04X.5 183 27 11.5 350 23 186 +3S 1200 775-3 I T 219 -2 240 ’>< *7 4j 92 3M 250 11 r IS3 +22 1 460 870 1.0 29 6

- IS 4129 17 79 21 15.7 RjftrS (20731 -.’701 1.500 890 1 0 30.9

.. 1420 9 76 43 V.2 lASIttr +05 35 55 '.729 5.7 70 SUrttj . -48S27128I2 16 420 SopnsA

4640 -1 « 75.3 3126 12X32 3a-«s8

UH -IJ+I.I+ >•«*

570 -270 75.10 5500 1914.4 2320 +4X7CX1MUD 12 211

-ig “uritfTi 22 18 f W 1 € = I7*** hrt

6 10 +06 28.51 4 7b - -- Ti

i53U5S? 27i l*™ S2&

1*47^^11 is £i Bk0» * VUG —Ofl 21.10 2*72 J J JJ®.1"

♦JB 47.72 K-U 4.5 rom iavm ♦JO 17.10 BJ59 1.0 20 9 VMU

* ttUB

3a <5 22.90 57 80

120

200

209

765

1240

172

*42

305

*05

-1 144 37.5(1 4 9 55 -5 li- 1G 4937 . ..

-3 287 190 0 ft 240 200 0 7 X9 BE 43 101 470 25 220 880 . 11 8 145 X5 01 375 14 8 3 26S 33 117 2S5 0438.6

-I 295 -I 207 -25 940 -201*00 +2 arc

-ft 7*0 -4 506 -S *42

90 + 05 114 DOW IA o .

15 -1 I5B3011SX 7.4502

8100 -05 BMO *47fi 12 360 £***

65800 *1 831 623 13 1X4 't!3

102.70 -130 lOPro B5J5 30 305 , Llg

£ aaaufl =fi«s «

vOmmDfl

.. Vmdo

- 02 5 78 254 29 1&B WlOa -20 13.18 521 20 18.1 Wesun + 10 14 48 914 0 5 243 tVKDpfl +.10*707 4 _»3

_ 19® 107 30200

-2Cli-;if 7515 1 i . SuBfb -35 3691 1833 7: M7 ToeBa -10973C6339 09 . TfloJan +.10 67 61 5E.63 _ .. Trait

-15S6.K3+9C 14 _ UrattA

-.101565 16X 64 64 (rf.TC

-4(1-254: -.547 C 4 45€ .13DOT

-35XS2 16.15 1.7 213 +30 7732 4771 1-26.4

BamEiJferg. DtaaijM)

2845 -® 28 90 2423 69 93 55 -20 39.93 2*05 1 0 367

1605 +5 'it* 3 b n 2 (eg* j.?® *300X9*0 1 030 26 186

5140 +140 72d0*J7 10 10+ AWCr 36850 -2.IW 2X13 15l3»5 20 24.3

2j95 ~S£S5?*S0I 4C10W -2974 *( B7 9. 150 U 6 7

♦IS 2050 1 156 27 14 g Z55 +2 415 DO 2.7 150

4.721 +101 5,550 2080 1 5 IB.

5-SS _,2 MS 3-KH

as -nm# s

IS +54 i|?8 ISo 1 0 340 2015 +8 2725 1.700 16 46

1.031 ..1080 BOD ... 56

41 ^?l’iiiia

H ^SffSSUB

345 -5 5ffl 156 09 509

1.IW *21 2931 85P 6.1 7B 287 -13 645 :i?‘J 4.7 49

BO: -111423 675 1 9 110

^ -i

TOO +10 1.310 556 23 14X

"•asawiai

*37 4.U5 2026 1 3 229 -D -645 3*7 X I 9 _ -J 192 70 13 146

.12 667 258 2.1 +1 488 252 2 0 16.0 +20 USO 1.150 1 7 260 -S 1.116 551 U ..

... 744

DUOD 6050 +70 7.040 2010 13 510

Erp& 33950 +1J45 30K 9.333 0u8 240 Hfio 9.475 -27S 12500 5 7® 08 370 HeSqr 2000 .60 4.190 1.100 X* 246

ujt* Tun

34 il 206

(Tam 3661 +1 61 17ZB3 3X77 72

S ^107 'x® 09 ITAtY (Mar9J 1€ = l33627000Uro

SS“,aS+?Ji!SSSfgliSS ^

HrasAfl 106.10 -2 30 20X30 11890 14 42.4 ADR 101 -2-ao 1)320 rare 20 15.9 Atrf tamFr 1E0O -27 20901*02 10 320 AJrca 103.70 -1 JO 116 9710 65 ~ W|j» kiBH 22.10 +® 27 *19 07 _ _ *M*B 268 . +6 3*4502360 1.4 42.7 BoCiiOf

_ -00 -3351 1X96 10 - L35 -.50 S7D15JS 29 S0 J80 _ 57 At 4203 7 7 1 3.0

12 +051&A3 73 36146

T78 -1S5l?*S (14 11 08*60 HefTel 7390 +2301V4S1*! 0 27 Z1 9 ‘tarona BJ70 +270 9000 5.70E 1.7 340 eneret 20X00 .1.000^(7)3,0*. _

J £ = 20048^CcSC. M»W1 5024 -409*5X90 1116 05 — 9ftO£ 200700 -EJ0 213RHt>J: 10*10 Pjo3i 6.785 +160 313* 5 100 ..54.9 — -JiLi*iara 00 450

TURKEY |Mar 9 /Tk Ural

762

137

1006

2.78

535

529

BCD PI 25.93 -109461913*5 1 9 19C- SM) 10005 +700'J‘ BCPon 27 JO -.37 34 67 17.46 17 30 BESan 2 4 -+5 2902 18^5 26 138

5SS1* Ji I? 1-7§s HOHWAYiBter 9 /Kronen

Bcpuu

WW 20800 *500 0(750 10300 1 6 266 BCoctii 6®

LabM 186 +8 3S43B 15131 iJ 121 Bdftt X20

Lbrar 8400 +1.50 190 » 6725 XO 708 Be*J i*

2036 -.i: 21.70 15 J4 X9 26J

LtaHW

Lapnd

3000 +100 44M2X0B ?0 2ft1 BNBZA0

^ zZ'Z&sgw&ifu

39JD +9062X2801 10 9.1 BjlcfM 10.60 ..296* 9l32 _ 110 Bft»rt

51 +2D69MXW J0173 toW ♦ft 30 -70 27.44 1448 12 ... CWW

32620 -700 700 3)100 42 161 C*1 8095 +05 104« *107 +3 XS nnr 2*6 90 ♦2.70 3 2fl MO 30 0.5 61-J gfOTT _ rriTMiuil 11 T9 — *Jt 47 nQ 23.23 1 3 B-3 CftRi CL54 -1«7O^«03 1.3 If* grfan “g

POMT 130 50 +1.70 219*0 1CJ IJ 11 ^0 Moft * M

PknR 157 — 1T81B0O 08439 o*

PranK 71.75 -0S ®?0 6000 10 27.4 f Jsw PrSK S74 +IJO 705 3W» 00 *45 Ral

NaWS »*3l (by EC

203

133

006

100

506

4.7D

140

034

UL«

101

QS*n

-re aeo 4TO ic

« 16 -404 1 28 — lie Oca**

♦ X 1*22 803 0 8 520 BeOP

♦ 04 501 XM _ X| itojcm .. 945 3 64 1.9 24 5 melon

+ 19 015 362 3 0 «L9 sontav + 52 7 62 434 23 530 Ttaed *14 644 X06 05 32.0 unieer + 04 301 1.47 161X1

JlS f5 f:7 ,i SPABlllar9)i € = ToX33630Pa.

_ 012 004 _ _

_ 222 1.16 10182 -.18 70S X® 1C47.0 3144

+ ID 674 X57 00 _ AEFJrf 107,

_ 867 429 30 90 {S?

_ 1_U6 X60 _ _ **7»«

+.02 1 4S CL59 — 4ttm _ 107 075 XI 760 -02 1 46 009 1.5154 A«te

1637 - 14 "S82 110ft _ 2X1 X _ 3X39 20 45 24 7X2

1871 -342494 J609 X 5 2*2 P*tsu* 55 -3 50 178 17® -J9 D K1ZS7 17 14 2 90 -2 141

4SW -1M 5T.49J6® 2D 87 -3 IX

Maw* 9.700 MckAS 9200 o+a ttt.ooca Enflft 34.QD0 KOCKM 39000 P«t*n 247000 PMDI 66 CfXj T&fian 14 250 TotaCT 3000 TMHY I9JS0 Tawa 750003 VWOBk 6.4U0

*110 103HI J0OO 2.9 488

♦ 600 1700 4.700 1 6 SMWDojjnauai 22 _ -500 H7C 11251 06 590 IJ)W MOD JJJM 0 i „

-7000 771080 80001 2.6 X7.7 -2000 r jmo sooo 4 i

♦ 750 14 JO 3050 39 360 •5O1O0SO13X 10JOJ

*1000 2900011588 . _

-ttflOD ijaiOOD 02 _ +300 -6000 2.1SO 08

+9 533 37ft 1 0 72 6

+1 310 130

+20 560 360 1 7 333 -102.363 1.960 2J 40 4 -19 1.594 77O10S.B .152000 1010 26 23 E ♦24 640 348 0.9 4.1 *16 1.5® 623 1.1 180 -1 305 158 J.3 713 2.475 *45 -3JM 2,320 07 300

+9 360 +12 1 B . S 303 >15 7.2*10 583 ^4 60 38 1 ♦38 710 453 1 4 5X7 -1 1090 479 06 402 ♦ 29 207TI 1.580 1 0 2X5 +15 1.172 5ft0 10 507 .. 240 1® „

-25 528 268 1.0 ... *6 459 739 1.7 *2 1 •23 645 4® 14 250 -6 2.390 10® 1.1 £.4 *14 260 I® 2.6 349 -32 1.125 ISO _ 22.9 ♦3 550 349 1.92X9 ♦7 371 143 16X6

-32 1 480 870 1.3 34.D . I 683 281 1 5 IS J +X 3.900 2.400 1 1 37.1 Dobd 2.200 *00 2650 1020 0 7 285

ix£t* (si)o.(«) JoaflyDimiau ai . Dnara <24 *19 4® 285 1 731.2

DwaMn 225 *4 400 201 27 124

Bnra 1J75 _ 1050 815 04353

BV« 2J6Q .125X360 1,571 00 33.7 U*M 70 6 -T4 6W 508 14X7

F4»lft15i80m +30X130 4,500 0051.7 4080 -2D X17D X250 00 305

-3 *01 150 2ft .

. *30 1.130 252 1.6 118

FiafB 2S5 +3 4C5 200 — 2X3

Wm *.4Si .loxooxan 05X6

• 988 *4 360 no 14 16 1

799 -27 871 480 09 1X6

132 -1 272 lTO _. ..

515.000 -aUMOMSMlMiaB 02 289 fejffcu 620 +14 824 465 1.1 14.4

MSI 1091 -ft 1.670 1.130 05 .. ft*) 1,07i)a -22 1,450 940 07

HIBU 1018 +43 1018 118107 _

473 *9 540 416 1.1 726

447 *32 577 333 1 3 210

♦4 m ui .. -

-10 670 375 X3 _

-15 344 300 16 *4 J ♦3 314 1® 10 — +10 1450 862 06 - +3 375 236 29 39.1 +34 1.175 900 05 68J +3 619 460 10 .. -1 425 345 13 -

+1 205 81 ..36.4

_ 122 13 ... _

-10 0® 415 16 71 137 55 -.

,7V 646 306 184X2 _ _j; 5(jo jog

8060 +140 8.900 5.700 00 32.3 469 -9 Sf- 300 r fl 50.4

808 *41 1.015 532 04

588 +3 836 415 1 7 280

2245 -30 2510 1040 1 1 27.4

335 -5 628 319 30 _

’040 +40 2060 1.485 0 5 37 0

370 -X 575 286 27 410 154 *6 297 118 .. -

7079 -1 1 2045 1.790 2 7 214

213 -5 244 156 1.9

1031 -30 2.170 1.782 2 7 37.4

HondaM 4. KB ,50 5.00 2871/ 05 180 hscfd 1.742 +7 2.030 1017 1.1 320

*wCp 6.060 -70 6.1B0ia» D0 57D

M 201 +3 310 181 XO 168

IwdC 367 -4 595 332 1.4 130

244 *1 365 181

-15 B20 427 1.1 50J *22 1000 436 1 3 .. -1 202 1® ...

+08 1 J10 935 09 _ -5 292 160 _. 14.1

-6 "870 50

+3 460 280 3 4 114 +25 340 187 10 5&9 -1 404 1® 10 .. -2 630 430 20 34.1 + 100 8010 5000 OLS

kata XO +7 345 190 2 3 650

MBu£ 14ft +4 245 110 - ..

lardy 1.217a .10® 670 1.6 37.1

JHX 642 -13 696 450 00 408

ree +b 420 2oe 10 .. 669 +21 755 440 1 1 22.4 790 +17 1.174 7® 06 ...

-ft 276 80 . 8 3

+4 523 286 0.9 ♦5 1® 101 27 85 -1 29ft 110 ... _

_ *19 018 417 1.7 28.1

738000 ♦XJKB7*UraaUB 07 44.6

jmia5i5MO*xoooseju4xuu 1051.7

138 :? 5S 13 c r

.^050000 si &

JS s ^ ssi

*» 999 67511343

U 1

10 171

610 07 306 107 +18 200 ® 28 _

22BS -15 1610 2,130 22 28.9

. 306 -4 380 2)4 1 B 19.9

Km 2090 *10 2610 1.630 06 621

S5S 3-4S

\ss s ft % xnr.

kctoO 514 +1* 57D *24 1 1 51 4 Mvnce 15570 +S7D 19)00 10 290 0 1 3X8 Ittnn S40a *33 8 35 (20 08 31 7 KMtn 1.538 . 10001512 0 7 248

sr ,.4i^

sJS 3 3 jad

iiS

60S +2 745 505 1.3 300

517 *16 674 470 1 9

S2 “

iumra l J09 Tc 1.ST5 1

KiiMb 317 .355

Kune 1059 -J) I 940 1.300 1 0 X

609) +140 7.460 4.800 1 0 24 4 ID +1 238 1® 23 .

+13 094 485 1J 315 -15 2*770 1040 26 271 -13 1.7® 1.030 0 9(0.7

-8 500 43d 1 0 Z7 6

Itotata 334 +3 5® 310 2 7 31 B

IMW eas -28 990 552 1 5 100 *10 1.6391080 15 225 +3 378 IS 29 170

-3 363 106 - ..

1 358 I® 26145

*C 1.270 r4»ai 1385

•7 649 481 09 *3 250 ToO 21 25 4 -6 600 3(fl I 5 24 3 +2 454 94 * 3 3X8

-10 405 765 ..

-60 18* 1,750 OO 110 -ft 396 156 1 6 .. ♦ft 509 296 184X9 +5 640 410 1 4 39L3 *1 355 261 10 2&7 +. 1000 1014 0014 4 -30 5.980 3+70 0 4 355 -9 1051 493 10 200 +45 1.492 782 0.7 *90 +: 1.457 1090 0 7 4X6 *10 1 362 890 0 8 4X3 05 13 .. 62 -.150 325 10210 365 1 0 .+ 310 32S 73i

hwiMl 1J54 NOrti 2*1 OPSM 290 OTOU 0*6 tm ft® PWComXZZM PetDin 2®

Psmm

Fwrti

PvOftc

MEM

CCTBS

-73

+12

S®

158

815

480

W*K

won

•eaooBiriBxnoa ai i>3

•e 2® 155 1.6 280 -1 391 102 + 6.4 +13 610 323 1.1 140 +1 460 380 1 1 62 B +12 1.240 840 !.? 34.2 - 133 45 , 60

+11 354 226 2J .. ♦ft 243 IS 1 0 ..

-8 488 MS 25 DJ •6 134 78 ... ._

-1 674 260 1J _

*4 158? res «. 6&o

♦ 101408 9000 U 168 *4 227 129 1 9 .

+10 1010 1.170 07 173 +12 0ft2 535 1.3 2X9 -I 810 341 20 30.4 +8 411 K5 10 353 -1 640 *51 21 77.0 +25 630 46fl 1 7 18.1 +3 223 112 1 7 . -33 10091510 03*80 *3 518 332 1.7 430 270 180 XO - +10 680 380 1.7 242 _ 319 162 20 ,9 500 260 10+10

+0 450 261 1.7 36.7 + 1 367 191 09

1® XI 2X3 497 1.4 2* 1 531 1.1 24L3 3ES 1.2 216 *80 11 90 177 1 1 -

.. 120 + 6J

+3S0 4X<40 90X1(1 Oft 17.1 r— Tnnrap 0068.7 +2 1® *Z -. — -10 5® 310 10 660

1.29

3 lid 9JKW 6.21 d

are

4 4M

801? 1.13

RtaTkl 2036* Rftinn 14 JO 5«H 406

Sdvn 2.39 7 New 5.12 Stoowl 575 smnw 13 SonCva *» fflerp 625

50 tr£h 10.16 SCkU 384 T2KTO DJId

TlSlC 70Od

Tctff

Tcrtftw

Ttnuffl

WlURd

WMC

WWTr

2BG?

wsenb

Atari

Wtaffll

873

148

1.880

250

)004

3JD

1855

4.10

8L15

517

+ 02 1-83 096 +06 404 131 -07 373 2*4 124 042 . 11 72 7 80

+ 00 3J7 200 +.11 MS 237 -m 171 105 ... 4.86 2. K -03 970 SG8 ♦ 08 706 537 +.02 13B 070 + ® 4.42 2.1B — 105 0.90 — 30 22J5 1029 -.K 14.29 8 BO

XO 3 75

+01 207 233

+06 640 xa)

-® 880 X70 -1013JS 827 -06 Ml 300 •09 Q.40 300

-OB 1101 8.56

-CM 4)8 245 -JOB 11. U 7.45 -15 &S0 020 -03 MO 3.46 + 02 "206 1 70 -2.0101.160 -08 432 £46 -11 573 416 -S> IX® 10.® +07 10)0 K66 -01 X70 3

-.1511.73 8.36 *S» -4 75 ZJJO -06 10.45 692 +.11 6.17 407

4 4 14 8 60109 X7 1X3

63 140 40 164 XI 3X1 61 129 20 97 40 34J 60 11J

34 164 1 B 11.0 X2 164 53 170 50 11.5 751X1

40 - 67111 XI 2X7 52 61 XO 24 5

5 i las 60150 30 290 34 151 .. 370 20 . 27 -

24 169

41 268

1.1 463 60 1E0

4.1 150 20 150 44 161 X3 210

+6 M3 +5 831 -ft 775 -a STD >8 1J00 +3 272

HUJPD

WZEW

map

HloJBk

HTl£P

IOB7S

keM

U*h6

Wdu

rtofdfi

takVak

120

219

(fcirfd X55Q WrLW 500

Okuna 575 ttunGn 455 (dyinp 1.384 Osrw 1J9S One PTi 4710

OnftCe. 1.282*

Orton 262 Orffld 5 MO Ortr 7700 OMtaG 380 PanaO 153 Pxmr 2Jio Pimv 129 Renorm 74 4cno 1.129 Rotm 12500 toyd 1.6*5* RvoU 210 toon 261 Xmooi 590 LWcyc 2670 Sa*w 148 Santo 1.781

IBB ’ffl

snyaEl 343 5pan< 503* sSoa 9.440 Semfai 2210 s9ES X130 Samel 640 S<?jrf 449 sani 3S1 ScfcOrn 788 XtUIK 1 J77* S«BU 44 5K0m 3.000* Stam 1.175 3*IP 1021 Same 391

571 -7 735 -5 404 -5 544 -4 537 +51.360 +18 1.101 -10 *20 +10 711 +2 770 -1 4(0 -4 350

♦ft

+11

*10

295 09 24 8 499 1 8 240 145 _ _ 288 20 2X2 rw id . 905 1 4 19 e 706 073X5

260 2j* —

99 2.4 380 353 1.7 89 ... 2X6

. 188 il 362

-85 2045 2000 03 34 7 +18 606 320 12 .... -4 770 23S1J22J +23 2.230 1.366 0 8 223 -5 1.737 805 OJ 40 0 +7 811 551 14 340

+» 57B 271 1.2 .. 750 403 1.5 342 7® 415 1 4 64 7 408 210 734 440 1.2 233

574 406 20 3X7 -8 1.613 971 00 363 -20 2220 1074 10 IBB -40 4020 2750 0.7 21.1 +7 10001.756 1.3 2X2 +1 350 271 XI 1X4 -180 6.480 4300 0.2 395 *200 1ELE3D 7200 07 21.0 -8 4® 274 \ 7 453 +7 404 16S 206

•35 2320 1.720 Oft S7J -1 180 102 _ _ +6 1® 58 _ _

♦39 1034 969 1 0 2X1 +640 MOB 9.010 02 238 ♦52.140 1 J50 12 27.1 _ 350 201 10 2X0 ♦ft 557 165 20 .. -5 966 640 00 187 *3 1720 2180 0019 3 +1 220 132 3 4 330

'230 9.660 7030 0.7 64 8 -153080 2065 16 .. -60 X4B0 2075 027X5 -15 8B7 £01 1.7182 +4 597 360 29 17.1 -9 521 247 _ ... +14 870 499 1.6 480 +21 1 JOO 970 1 4 DO +1 144 34 ... __

+170 0400 7070 05 820 +151.230 770 1 0 5X4 -TO 2.100 1010 20 42.7 ♦ I 953 310 IJ _ *35 2090 1351 0 3 250 -ft 943 86 06 33 9 +38 1006 1040 U938J +20 1^0 1^5 04

-300 ■5031 39 +i i® :

-I 483 i;

*3 170 +11 346 ♦1

faKKDKAitarS/tfJtSl

AXAOR 535 Awqfr 500

BEAST 11* 8MM a 40 BrSmi OftH COL If 1.73 CLPHd 37.90* areifP 880 artsng CL85

S8£f “S

annex 1000 OiTnfe 14

CHtn 103

ODcP 14.45 Oim 4.BD DtaK. 21 BO

a I 7.75

n 0X5 1210 Did ajs 67.75 ' X37 233

5 10

HHlM 3600

f+jQcn

tea : HLungO

Hancm

*OiG 10J0 f*2T*9 515

1D0O S15 1400 340 S&75 - 10 320 19-30 1X26

II Eta did HupWfl todiW

JohnB

KMBH

Kinmg 036 LneO* 345

UtaO 0J8

UrtM 705 NAstaR 620 NerMId 1X10 Pbprrt 0.40 RUM 520 SHKPr 5725 - ScoiTCI 018

WLnd».

Mto#n

«h»

ytrong

200 1.3 41+ jin xi M

DJPS5

7.39 40 O# DOS X3110

400 £9 170 061 118 X7 28.40 27 74 4250 XD 120 450 10103

8.75 078 9.7

805 46 4.45170 665 4.1 12 023 .. ..

2.12 30 64 5J5 64 44

030 -

3 75 80 £7 1ST X) 185

6.40 77 >

35 H> 50 10.1

230 1X6 13 1.78 90 8.7 ID 4.714 2 1905 41 120 7 JO 14160

3 15 1 0 +.

7.76 70 fc3 20.15 60 99 (2.15 50 102

1D5 20 — 2955 2£ 183 457 80 8 7

226 1.9 - 1060 10 283 800 82 __ 021 80 ... 290 10 021 XB_,

4 70 XI 228 4.10 - 20 7® 40 130 030225 - 7 90207 30

20 65 11 160 0.15 ... 08 900 24 101 039 Ififl ... X10 30 1*1 2J5S 4.7 80 045 25 9.1

1 SO 223 ZB 10S 7.0 50 240 7.0 14 9

002 BJ 21 1060 45 8 2

3.16 61 61 14 30180 022 180 _ are 10

a® 123 .. 1206 4.7 140 605 B0 110 X20 5 7 60 1X70 4.0 98 105 .. 100 000111 50 QJ2 142 _

783639 Haiti t 640400 WFar 7253® Anft» 400 UtoQ 25165 BCtel 15! 7831 BCE 243620 B gift *21348 Send* 2000 B6RA 201718 BUfckD 9B2411 WtaS 7*50790 tokfia 40400 Bndf» DEO tortoA 880496 BmtaB 10780 Brtlir 12840 Bmcw 169676 CAE 200 CTfkl 6500 Cnnifc 36730 CaraOp SB60 QitfOA 230205 OlttMf 165571 CdnU^i 18477 CtaWCP 7966® CBntrp SS® CnAfee

2Z77B4 Odtaflx 906827 CNatfts 727172 Canttei SI 7285 CwPK 167 CoiTh 259064 CanTrA 16049 CnUA 647 CznUffl 78635 CaiiB 1388® CanAfc 6331 Canfien’ 35732 Ceton 42000 CD®. 99780 Cagnoi ) 1706ft Com dm 19160 CmpOg Coraum B3l 70 Cone 15800 CHI 77035a 0*316 1750 oaten 14K54 Data) 805149 Dcmttf .

137227 Dhus* 8544 DlTniA 1319 CxnBA 2200 Empfte 9300 EdtoB ifj®14 293330 Bcrdti 4854 Ema> *3X0 Ererw 255862 EnMtv 7200 ExMQ 26825 EnWcA 2(00 FP!

ICO FaWV 4149 Ftartr 1D6361 Fata

tnex (mu

4300 FdMA 651® RCDWa 4452 Fans 55896 4Saasn 264036 Fr Her 566870 Sans 15993 cateu

45824ft Ga bcC 1300 GndiA 58708 Com 78824 GMS*

1 oac

SI 304

UatsnAi

Maori*

NaffijcC

iktecre

Newd

HBiTM.

i 700 11 .. 00 2X7

10 lid

,5, 10 ,M 220 26 - _l 541 1 4 370

+40 2.^1.270 08 ...

♦TO -9.100X700 00 .'.

- - 689 103X3 860 rift 307 1 1 342

Asan

Bitek*

SSr'SL

BPTraoi

HHSant)

BiKPP

'ZX

(Mar 9/R^3h)

750 -60 2060

ire -a wro

225 +26 650

225 -25 2025

6050 +175 8025 X1M -X550 ISO 1.750 325 +25 1.025

2.700 -26 4.000

375 _ 1025

PocfiP

22S 80 8X20100 175 - 1752M 1.750 1,150 10 100320 200177 1075 1.8 125

HALATStA [Kar 9 / MYH|

... .. __ I33j6

+JS 807 401 10 3X7 -4 385 238 20 1X7 _ +2 148 71

142 +14 264 104 ’1 ..

-S?

1059 -Jt 1940 1,300 I0 33F

tlB1***

I? tt

3E -1C5S235M70 22D0 taco A 14 60 -.40 1950 1050 .. J» -f *14 8BJ0 09 .- fctaoe 14 -50 19 50 10 ._

*0 10 70 oS 1.1 118 50 X7 01 40

PACIFIC

JAPAMflta9/r«1>

5100

1007

2X»

1107

5505

A49

403

606

681

3tD

Brtms Ortete MBA

-«-SE6a.0< 0.7SS.8 Dm*i + 02 1617 X71 U 2X2 BkanA -.50 6950 701 05 rej Fota -03 14 18 637 16 -. raw -JO D 1197 16 XI tafcB -07 1556 1! M 20 2! C *«TOw + 60 6615 36.(2 0 9 376 Km A .m Aik Aid tom K*9 -09 1064 X71 - .. wn

+02 m OC “2X6 'SSS-1??

+ ne ll 7M 405 2-1 97 Aran ft 20. $5 -01 151421 V< 2X2 MASK

IE? MB 4M’6t7’ A^K 10.79 ,4? liift 500 _ 1X9 M2.

♦ I1 1200 801 10260 AumarH 22.60 -50 24 64 17.13 1 0 42.0 Krai

£« 4« lot 20 120 A Sto 13 -04 *3LC 1 7 19 OJ _ Hen

11300 -00 114 -100 16fi 32 29 80 2X40 IK 70 10800 79

S3 ._ 31 _

37 .

ISO -I ID +00 9450 -150 7400 -1.50 17.50 .50 202

... U

TO 25 19 B( 18 90 _ 370 130 14 ...

-2 7050 27 70 XO

-.10 3700 1X20 X2 7.1 - 20 4X30 1620 4 B 1X9 -JO 199 83 20 -

-50 12056 TOM 50 90 ♦2 7900 33 10 156

53 40 2)

30 34 30 _

82 32 P.1 _

358 70 4 7 _.

327 Mi! _ 14! 80 * 2 7 0

■1S5 40 0 4 S 7

46 10.10 . _

210 140 1.1 180

1X70 -10 3217 800 10 14.2

A&nSk 1.178 Una i .330 Ante 207 AMM 356 Apia 2130 MTUdD 615 tattoo 90S AnboGi IB* ATOj 957 AoUCo 50 Ptmm 3.280 ArtnOt 1,603* AtoA 517 Aod» 1062* AsahK 570 Asetoa 009 Aano 389 AdTOk 16ft Asks 127

-10 USD 1.004 ♦31 1JTO 1.TO1 -6 445 190 -6 770 335 -15 2(80 uno 821 503 -3 1J60 912 -1 328 ISO +451.057 775 +3 ID 40 +110 3.750 2550 +5 4.740 lX® -3 700 TOD -31082 1030 + ) «> 400 +14 K3 014 -11 574 277 ._ 260 155 +16 151 81

■* ,54 2J40 1.873 1 1 38 I

410 _ 2010 ijST 1 4 220

ISO ,70 6 400 S EN) OJ 38 7 213) +70 2J75 1 040 07 47.9

1.120 +10 020 070 1J 50 7

+75 19* 3.100 14 24 0

-19 594 345 23 ... -11 679 515 1.4 67 0 -2 531 311 DO .. -11 450 303 1.5 44 9 + 16 509 376 12 301 +S 6»7 430 1 0 . -25 2825 1.670 OS 27.1 ♦3 1577 970 0 6 306 -3 958 481 IJ 100

♦4 SOS ?0ft 3J 290

+7 300 196 0 7

878 +101.090 577 (J 304

♦ft 422 1® 09 . 1.239 *49 1010 787 00 606

-8 484 2B7 1.7 217 +S 581 401 22 2X6 +19 1.710 1.0D5 06 41 7 -7 306 189 .240

_ 470 ?oa - -1 267 100 ...

♦ft 334 188 30 3X5 -2 245 13 „ „ -ft 417 271 £2 181 214 TO _ _

♦ 29 1.480 *48 0.7 ar -8 *34 2M 2.1 122 -2 496 251 1-3 2Z1

♦19 880 480 12 323 ._ 129 85 _ _

ore +19 1.450 638 00 555 +6 755 505 10 37 5

S «ss

ItoS 4.190 Tstid 616 415 leika 337: Tddun ToiQp Tteftma

TjbiAr TabCp

Tod 304

Tofn 1X11 w Torts’ 1058 TWO) 568 Tkdtt. 733* IcMcd 1M >wu IJ® noana 396 TTOi-4 1,280

T5S 1.Sj4J ^ 1 31 6 +12 805 445 (J 114 +51 1.475 1.004 05210 ♦40 1T350 6.7D0 07 200 ♦3 340 185 1 7 2X2 ., 4» 197 3 3 _

♦50X440 2.450 06 34 J

AorPra

Bond

CAMa

EON

Rnira

Gonng

Odtoe

HdrLm

rtbed

HLnrfr

HunUji

UXUrO

KLKepg

unGoi

LOU!

u3S

]^r

♦200 1509 1299 07 «20 -4 2.195 1.830 27 190 ♦1 982 430 1.2 *1 31D 705 21 17 7 +3 2* 124 ’2 *14 1020)0® 07 5X9 +1 41D 280 10 360 -15 1010 940 08 229 ♦17 1.110 550 09 .. ♦25 XOOO i3fD 1 9 250 +170 5.750 2.755 0 2 320 +3 715 2® 1 8 440 ♦ft 245 140 3 2 34.7 -12 919 426 0 8 ._ -171.0901.000 10 328 ♦4 271 110 „ ..

-1 167 70 „ ..

572 281 10 ..

140

0X7

002

300

505

0.41

2.17 Z9B 0 61 2.72 069 510 074 2|

6® 065 1.06 002 1J9 14.00 3^6 800 500 1.90 245 llBO 400 21.90 XP2 *20 102 1J9 7 75 6 2.19

1« -.02 ;S + 10

+.14 4 67 103 + (C 098 Oil

- SS tt

+ 10 172 0H5 ... 7® 3 JO _ 095 0.15 + 35 1X10 6

~ 4 90 1.90 4*0 186 390 1 92 1J7 0X1 4.04 160

ix3 an

930 120 +02 1.44 X2< ,M 220 0J9 „ 294 065 +.05 4 SB 1+4 + 15 8.10 173 + 05 (08 030 + JK 148 0*3 _ 094 022 +.13 183 037 -10 30*0 11.70 *06 STO 102 + 10 10 30 186 + (5 6 85 1 88 + 05 202 091 +.13 324 OBI 108 027 +20 825 204 . 3250 1120 .. 70S 35* + 12 4 72 145 +.05 1.53 043 + 11 *42 001 +.05 12.70 *J0 +.10 9. BO 2

. 4.74 071

1.5 120

2S 20 J 1.7 114 . 30

*! 0 0

7 9 9ft

02 <7J

1X6X2

107

10 io

7J 19 1 40 112

5.1 16X

J! lit

3J 24 0 9 8 130 9 7 1X6 1.0 _ 40 170 13 ... 1X2X5

r. ai'

HteSIA

(twv$a 8800 Httox 72531 Htsfej S24640 moscox 261316 kitoOOi 244267 ta 8829 nmol 24700 kMdE 10425 tax* 45150 Jmtt 1503442 U*6fl ICO f 220033)

)00

106013 Lobtew 391997 lonm 130813 MtoK

614% USB 470529 Mactnfflx 507391 Ate ml 22182 MaT^

411620

411508

126533

263836

650229

2312935

21290

377706

253X1

653318

1478359

BOOC

25078

929184

75752

763351

43622S

4177547

IS7775

9(838

80281

2S0

950

274313

S30DD Romp

(3200 n3«r

290412 Radio 299900 IWtar 1T31E96 RddCkC 430738 RmtBcC 43630 RyfepT 272445 Doyrah 31800 toOH 270600 sm-u *500 SR Tel 90 SOdeA WW Sortie

5683*9 4905

78331

9920 StoS Swan 37045 Sour As 9*270 SUco 39292 Swfay 174417 Trenfl 574525 TVHOd 474905 Trtef iaan» tkxb S59611 Ttteft) 400 Tenar 301DI Tlmnwa 534718 ToiOom 826123 TrsenP *93663 TlRter 49106 TnonA 3585 Til Due 56823 Tftf* 63721 TrotMi* 20409 UCttp 54675 UMDora I 79500 UfcniO 134636 Wese&x 17619 «te*G 1499138 WtonRs *70 WIG

Ptoome,

PoGaa

SSS‘

QcbTd*

Mimx

35.85-1 85 4ft* 2X3 16 -2 33 13 ia*S -2 114 Hi 3076 — 15 41 »

jar -4 34 n

84 *05 OHS 317| 40-95 48325 3X9-1* 81 35

905 +aius M

64-3 B751J5 3275 -044.7 280 -05 3MS 201 105-06 20145 21 95 24 1&7

21J-1S0ISU0 170+05a» 13J 2X75 + 65 325 160 88 -.1136 70 570-05 ®470 0 43 +01 0.731X6 X» 705 4.75 005 +1 605X25 6.46 +JI1.B 50 8£ ♦ re 160 7.75 31 05 -.15 an MLB

37 -.15002*4 (7 -05 210 (SS

75.75 .US *615 2*4 -05 31 J i&a 152 +.1 3X6 13 1

28.75 -0S 4X8 25£

51 JS -10 00 » 3905+25 45 29 480+26 48 ® 4AJ -25 4925 30.1 *45 -051175*25 201 7-25 10

11.7 +.2(765 105 100 +J 73 1BJ

ii0 +05 a io

340+1J4US2U5 1895 - 05 270 130 4 5 +J TO 30 5J 1715X15 7 +1X05165

4 £5 112 445

1+0 -.152105 9.75 105 + 03 04 1.13 1X7 -.126K1525

90 +05 12.7 89 324 *43625 259 4615 47.75 310

145 31.2115

27.25 -.153205 22 278*05 50 24 1X55-053X1 17 7 D.67 1.42025

90S -.15173 80 7X75 -IS 7255 S79 217 +.752825 14 &X -.1 173 5

5J5 -2 1725 435 505 -.05 7.7 *3

dflOb-ssusa®

520 +10 610 344 16® -4 2115 lire 975-35 IBS 9 18 -+2525 1625 11® -.12*251275 3X3 -J 4X1 35 60.1 +.7BX7 23 ® +13 3X9 200 205-05 7.4 2J5 30 -^S 313 18.75 2X4 -1 C25 1945 145 -.25 203 3

£76 - 08 505 10 IJ B0O95 301 X7 X35 14 15 10

3£ SS 20 160 113 nre

16 3X1 1*35

3X8 +.1534)6 22 2X9 —05 2925 2X8 186 -65 are 120 2 EJ IJ 210 +.1*15(70 25 -.1 SJS £15 140 -2 2£4 12 152 +.1 7.15 2 7 45 -56703)75 Xfl *05 2X5 X95 24J5-BS 382205 3X9 -.1 4035 27 A 2. 18 -JS 41 45 207 1X1 +0G 2356 12.7 34+05 34JS 24 160 *2 JiJS 110 TO.4 -31 313 TO 40 -25 430 39 XOS +.151115 505 1125+05 24 00 210 2X25283

21.7-25 2819)5 160 +.12485 140 0® 107 Oft

249 +LS*]U5lj£

re® -a r 19

42.15 * 6 EO0 2385 39 — 067825 29 J565+® 45 » 6S+I51X2 57

005 101 *1

1S7 - 4 38.1 14ft

8X25 -05 KD3 41 65 20 + '4 5.7 £2 47 -2 SO 26

mis + isure 8fi

17 8*052175 15 1835 -J 287 l*S5 0.4 + 03 1X5 035 18® *J 272 1X2 &4 0-251*2 75 30 *23702175 305 +0370227 188 -2 21 1445

E5 70 40 1X1 -J 31.7 125 0 OB U650JE 60 -2140X75 1605 +.15 »0 14.4 1.1 +.1 545 I

*7! +.4 95L2 57ft 38-® -48 23 0205-01 100135 14 65 201

»2 14 9 85

28 3 1J6

7?-.®75«31f5

■' -JSnZ

...

1 4$ -IS 1466® TO® +0 5X4 3X6 16TO-15&C51I® 234 +.14X4S 1.75 27 -J 4X8 22 1 104 -J 210 60 4725 +05 77 *>» 7® *21675X25 372-105 TO3JB 64 J +® M 75 3 70 200 +253*65 1XS 24 6 +2 2X4 182

S -23495 252 + 1 630 3725 29 75 —25 50 26 1 TO +04 19 1.55 3035 - J5 357 2775 60.4 +J6«275Sf» 0055*01 046X04 J.7 9 S

MONTREAL (Mar 9 /Can 9 4 pm dose

NEW ZEALAND (Mar 9 / NZ S)

PM HZ 12£. AkAkp 277* Bnal 0*3

CaAHH 1 67

Tonen 5TO* TppnPr (.380 Taw* 535

300

3TO

169

919

- M3

-1 383 +3 451 +12 299

rr/S&P ACTUARIES WORLD INDICES

The fT«P (Wtotei HWfl » <>*"* » P156 Family of Aflwrtos ud #» ho®® d Aetoatex

NATURAL AH)

REHONAL MARKETS Rgun to parerthesos dun naatoe of Ana a> slock

Emerging markets:

tad smm & Poor's. The todees ore cmnOca by pTSE Warudnnd anfl sanrtart & Poort In confirdtan dth the IFC UlVGStsWe indlCSS

— MONDAY MAHBR 8 1969 ■

FfflDAY MABOH 5 1999 ■

Dote)

ton

Oafs Part

Ctange Starting

% Wa

Yen

Local EuD CllTBKy M» to**

Loot % chg on (toy

Grass

Dw.

Yleto

US Pound

Defer Storing Yro

Mo llto tote

Euro

Mb*

DOLLAR reDEX

Local Year

Ctoiency 52 vrort E week ago Index MRi Low

Dqra %Og d»g taa

% are m

Austrafia (75)

Austro (21)

Belgium (22)

Brakes)

Canada (113)

Denmark (34)

Fin end (23)

Franca (741

Germany {551

Greece (36)

_21122

.182.18

-37607

.110.73

.204.44

1.4 194.78

12 167.99

-0.6 348.79

..425.19

63869

246.77

.-..396.13

ureuce l JO! ™

Hong Kong. Cte« 166) -297.41

Indonesia (24) **13

Wand (141

1535.74

Italy (53)

Japsr (445)

Mexico (29)

toheftoxfc 126]-- New Zealand P8t- Norway (37)

fh«pr*Ws/22)-_

Pvtuoai pB)

SlnggporeiW — South Alrtca (34)- Spain (3ffl —

Sweden (43)

Switmrtarai (30)—

.167.08

58.15

7J)

1.4

-1.1

-0.7

2.7

1.1

-1.5

-12

102.11

16893

392.10

587.13 292-70 227.56

367.14 274.28

4192

49494

154.07

9051

..^130728

480.77

64.42

23091

33 1205.53

-0.4 44395

a5 58.41 -09 212.66

-23a 21

"1„ 90799

-20292

1.4

-0.1

8299

21996

00 191.53

09 18695

-.373.03

.+512-79

Dnaand (31)— Lfeited Kingdom (202).. USA (612)

America (783- Europs (724)..

393.87

9190

’ZZ-388.38 529-17

__469.13

-1.1

-1.0

-fl.2

344X0

47298

36X2!

1991

358.15

487.98

		77? AI	i a	3.39	20X39	19166	16106	221.15	22069	21966	163 86	20755
			(19	1J7	180.05	16X85	139 16	16860	16660	253.73	165.27	204.16
		343.78	-0.B	156	37X14	34X32	29226	34669	34668	446.95	283.73	283.73
85.34 157JS 337 JO			15	5.78	108.08	9965	83.53	114.70	39360	26964	89.32	24X48
	224.17	1.3	1.78	201.58	isxra	15X80	21X93	221.22	24X78	15964	230.70
		-IJ	1.77	42904	39X94	W 73	456.16	40065	537.33	420.12	45X85
	73003	06	155	63127	58148	48720	72X95	72565	66125	338.49	34X01
244.63		300,11	-0.1	2.05	31X81	291-82	244.86	300.43	300*3	3S4.45	25366	289.79
	23057	-IJ)	158	24X42	22X83	19X00	23£80	232.60	32X61	22665	25065
30584 22922		843.88	2.4	1.01	387J3	35666	29X51	41126	823.82	42S.S	211.47	-
314.70 47.78	295.87 247.11	U -1.1	4JW 1.18	294.18 45.82	27HB8 42 JO	227.37 3X41	31220 48.62	292.S 248.73	362.52 64.52	196.64 1X04	34261 4X81
		546.30	-02	154	53X50	493J6	41328	54767	54767	60565	K6.15	480.72
12577 7554 1007^3		222.01	-1.5	1.46	169.06	155.73	130.67	225.31	22X31	132.54	12868	14162
KUOS	7554 14074.47	0.0 XI	053 1.82	97^4 1265J37	9X12 116X56	7X52 97758	10363 1342.85	7562 13644.63	104.84 1733.73	7X83 787.15	10464 1607J3
444.35	44*35	-0.7	2.16	48266	444 J9	373.04	447.40	447.40	562.73	3S452	46220
49.66 177.73 69.10 isasa 160.07 156.16 207.50 39521 3(a55 1664 299-33 407.83		5*27	02	439	6408	59.03	49^3	68,01	64.16	7764	45.68	7568
	246.45	-10	155	232.05	21174	17924	24626	24833	357.71	181.B6	31427
	17582	0.8	0.94	88.33	81.41	6431	9X79	172-44	10X38	42.48	9X66
	300J8	-0-4	149	23X53	219J2	18425	301^	30135	29929	194.13	-
21577	166.44 274^	0.1 0-7	1.65 3.44	207.61 20X39	191 23 16565	160.46 15527	72V 213.19	16527 27X67	24X74 34620	102.45 15155	20X12 27141
	43107	-1.4	1^0	377.32	34756	291X2	43X32	43X22	43X19	29051	3404)8
	rosin	-1.1	1.98	517 76	47X92	40X17	549.47	63C.ES	K&19	37X18	524.40
	357.46	-0.4	1.20	384.73	363.60	30X06	41X90	3592)7	441 £5	307.73	38126
	31.15	2.0	IBS	2U»	1924	1623	2228	3064	33 84	X15	30.46
41056	358,15	ai	2.68	38X31	3573B	300.12	41269	357.68	401.84	307.96	36X50
559.93	529.17	ae	125	52X14	484 £4	406X5	55X36	52X14	529.17	390.12	43085

.94852

,..88.37

BirefatoC (342) ini erf

Nome (143)..--.. jnejM

Pacific Bail (721) j**

6F0-PadfiC (1445) J"-”

North AJnsfca (7251-.- Elic

Europe Bl UK J1»46

-a3

-0.4

-a4

0.5

432.62

321.78

90.71

456-44

98.04

191.01

467X1

29067

Europe Bl w P®® ”^07 78 -0.1 sai7

tefc e* *p® as

SSb,usi« l,

Wwtd Ex. » '4^11 M

World Ex Japan (18m , 5

87X5

169X2

99X8

190.7!

279X1

38172

361.56 26X91 75.B1 381.47 8163 13X64 39X8! 245.44		•wsso	0.6	129	46622	429.45	38063	494.77	395.94	489.13	34759
3® 20	33362	-04	U6	34X81	■m 7?	27066	37123	33X25	38X24	28263
	99.47	-0.7	1.81	98.79	91.00	7G65	10X19	100.19	11362	81-53
	520.35	-0.7	122	487.17	45726	38426	52762	523.79	55X97	36X04
112.49	84.10	02	161	10560	97.46	81,77	11228	8361	114.16	82.88
	17752	-02	1.90	20722	19066	16X16	21X91	17861	221.79	186.00
	50807	06	1.27	504 JW	46429	38X56	534.91	50X04	507.06	374.92
	31220	-0.7	1.72	319.74	294.52	247.12	33962	31443	36X32	28093
10346	100.38	-0.1	229	97.86	90.14	7563	1IV5.B5	10X46	10193	77.40
73.42		9XD3	-06	1.43	9568	8X03	7366	1J1.42	9&W	10921	75.16
19461	18X40	0.9	3.49	18161	167.47	14062	182.95	186.67	21X04	12828
3X97 15929 233-68 3C0.70	11391	107.50	X4	1.51	107.15	9869	8261	11171	107.03	10X05	B3.09
21X83	163.05	-0.1	122	20669	19069	159.75	21964	18325	221-9!	155.95
	27X68	06	1.42	302.07	77X25	23X47	32067	274.92	311.48	23X11
44X30	41222	06	1.52	414.63	38128	32061	440 09	411.15	42769	32058
23X34	32X60	28325	0.3	165	30960	28X09	23921	328.45	28261	31861	24266

390X8

325.12

455.76

114.16

2<C.14

41110

293,60

201 36

205X8

289.50

364.56

Lotto America Argentina	7M.n	-4.1
Bod	yyna	*20 -150
Cnro	48357	+10 +7.1
CctomUa'	376 15	♦1.0 -144
Uenco	547 00	+10 +136
Pen/	138.47	-0.4 +1.8
Veneaiete3	33957	+0S -2X1
East Asia China*	2265	-10 -120
mSd7	77 4?	+22 +208
todoneso*	21.32	-1.7 -lift
ferea’	5064	+65 -30
Kftajsta	8007	+05 -95
Pattaarf	9002	+3.7 +40
Ptk4***5	13.08	+1.4 -0.0
Sri Lanita*	65.74	-3.4 -202
TBtoai, ChW	11X49	+10 +0.6
Thaflaod	5X19	*12 -7.9
Eorape Cadi Rag	3960	-Oft -226
6reesc	716.06	♦2ft +1X5
Huigarr	253.53	+X7 -9.7
Wartf?	4TO29	+X4 -70
Ptrtjffj)	16869	-00 -02
Assla	3157	*345
StowWa	37 46	+0.1 -14.1
Tutey**	183.73	-0.7 +324
WitaUAMca Eflffl	7438	+1S +152
toad	1)623	+35 +117
Jordan	23864	+25 +100
Hortxco	167.0)	-05 -0.4
S«riea“	141.40	+1J +125
ZtabatWB6	11463	-03 +82
Itatfo® Compodte	191.93	+2.0 +2ft
Latin Amenta	41X68	+1ft -15
Asia	10X12	+28 -15
EUEA	125 1«	+Tft +X5
Euros	16066	+ 1.7 +70
Satin Empe	SXB2	+35 -20
K S Africa	60. ID	+15 +12.1
Comp+lfelBY	1X3.16	+15 +15
p&*msi	10408	+24 -33

313 156

TaCrtta 20

Imnl 1®

1®

1M 78

tesita 1JB0

YrnamC 1.167 V monad 830

frrrta X790 ItenCp 1.057 YtanKog 579

VmTrar 1072 YnuBrt lftTOD YasKS 1S3

VbsF* 545

voiTisa 111

Ytaifi 581

YkRp» 239

YfcrrtfB 309

VcrriJd 2fl3

VodiPTi 1,110 Viasa 305

ttrd 2 76

+12 ... ._

— 7l . .+

IBS ... _ 80 20 _ . 570 50 4X3

-J 1.890 1.088 1.1234 +15 745 501 13 3X2 *“ TOO 0.7 .. 22B 08 62 256 29 31ft 1TO 27 160 2315 1330 0.7 - ♦ 7 1060 730 1 3 .. -I 290 as .

♦TO 2.455 1 TOO 07 295 -3 357 277 ZO 1X7 .. ITO BO __ _ ♦85 2*30 1.4)0 OJ3XO -10 3J630 X530 X7 770 +11 330 175 _ ... +8 910 230 1ft .. +2 329 llOU - *f 509 218 25 173 -4 2*2 100 _ ._ ♦ 10 232 140 13374 +2 IB 68 _ 133 -2 1,475 1.196 1 1 24 2 +34 1.00 1010 0ft17S -17 1,710 6® 10129 .130 3.9*0 2.750 06 _. -1 1080 995 12 19) _ 1,110 470 Oft 153 -4 1090 1336 00 400 ♦11 103D 1.117 00 384 ♦ft 447 140 . 84

*75 113X1 TO U300 530 13 196 220 21 — 255 2 6 _ 2SO 10 4X2 6» 08 29-1

135

190 1.1 ._

2.77 1« oao 139 505 6® 000 452 3® 745 3 43 9l32* «T9 TOW® 7®

FCBM

FCEn

FCFor

fc p*)

Form

FinPai

Mb w

Lionte

SaiH

-05 3 35 -.02 -3 01 +.01 1.19 -0* 208 -.02 4 13 _ 6ft0 -.03 1.37 — 302 -05 X1D -05 700 -05 800

♦ 02 530

♦ 05 185

*7.45 -0T -355 -15 10

-16 "650 -.05 •;.«

1 SS 43 93 1.70 _

0J0 .. 46 1.13 4 8 ... IDO *3 73 283 43 64 039 ... 88 0 84 —640 4 25 31 1X2 4 76 2.7 21.4 560 2.7 21 J 4 30191 2® 33 36 1 4 JO *0 ..

7jo i? adl

200 — 05

3.10 10 2X2

273759 OtoOtf 30TOO Cscade 5H) CTCB 23436 JCoutu 05872 UffUdl 575 OficorA* 160751 VUbn

3*65-05 454 214 75-35 II3S Eft i4® +.4rrenft 34 S -.7 » 18

1X2 *2 221 161 H 34 55 2675

2025 + 15 26 4 1475

MEXICO Mai 9 /Peso)

1230 pm

+ /- Mgb UM no p*

Alta A

SKAPORE (Mar 9 / SS)

CKraC

CBraV

bum

ecorti

Banmrfl

+»1 734 _ 270 ♦ft MO +4 404 +2 400 _ *21 -21 1349 +2 ran -14 354

AUSTRALIA (Mar 9/ hetS)

27757

Star oc Qsr isasrim an? aor au rete ar RIM ! 199). OOBf 31 1932 Wa i 1 SEC frtJOto 71 193? filjte 3 1992 TOAD 4 1991;

(7*» 6 1SB2 pero re me I (an. w

nr jt »«; tVtisSJ 1953 (730x31 UK nok ji I® nine 31 ree rost« 7 ran Ofljtyj m

ItertOtotMUTOHtrHkin

AUP 1700 APWUH 205 Acacte X32 tamer 7.7S AshUri 0® AKZa 1055 AiaFou 200*

tasGU 1102 BH> 1209 BkVUA XII Bcacrt 095 Bonl 232 ’ 0.16 41 71

ensw an

BntePfi 028 CSR 364 ca 1420 CMWM 300

Cun. 108*

Wr» 205 Srw 140 aif 0 75 cow* Xl 5* CCSeff 139 Cofcrtl 808 cm 609 Cmdca 500* Can>flk 2406* Cbm are

bevUs DEI

DoBbG 2® run

FCBH 130 FCFB 205 FCFfl 070 FCPlp l.DS Ram 3tS3 Fta S3D

fS3 12 Fosra 4.71* FtB* 5J2 feATi 267 BQAm 4.45 ferae! 1JD ado 125 fenf 1® BCdM 108

thfej xn

TOyrtm 1X25 Jlftt 300* nSl 042 LmXs 2100* LMC 116 LktoN 305 UN OJW McqrBk 17® HapcH 530 uctan a® ktowr 25S

MB 27 SB NSHUt 2ft9 MOfTO 307

11.45

1068

-D7 -2317B4 10180 + 10 2TO 2.02 2ft +XD XB5 1.45 I 7 2S0 -.10 X15 504 50 1X7 +01 1J0 DJI 10S 12 -02 1204 838 4ft 117 +0? 3 IT Z40 16 3)3 ._ 1203 9*5 *0 1X7 -07 1X10 10R 4.2 -04 -306 2.60 SO 140 +08 1 20 a 78 _

-K 7® 72165 113

005 au ... _

♦ 38 4420 23® 10 383

.. aae ftifistr

+ 04 D32 0 04 _

—04 509 3 15 60 „ +J015J8 B% 1 J 410

-03 *4.16 2-51

451 345 00 1X3 .- 208 100 12 11.7 -03 225 0.99 4 1 _

._ 119 as _ ...

_ 7.78 175 2ft 27 8 ♦02 110 238 ...

9U2 Si* 28 270 X35 4 4Q 1.167.7 -IS 707 509 4.1 133 -.02 2500 1608 4 3 212 + 01 246 040 „ _ _ 1 10 D3B ... _

*J& £75 1 47 S3 130 -05 ISO 2.16 XI re? -05 150 1.50 72 +.10 558 £48 SB _ -02 1.18 034 70 _ -04 257 179 12 - ... 4 .15 222 2.4 .

+.18 9.90 UO 22 284 -07 1124 X30 15 223 -10 603 119 £4 183 + JS SfiD 4 5 0 19 7 -02 115 2.48 7.5 113 -01 550 17DX2 .„ -02 1X> 1.01 67 159 +01 1.99 1 21 32 411 -03 253 1 4Q 43140 2® Oft* 41 11 1 +.11 121 203 49 280 + JO 1825 6J0 Oft 561 -.OB XB 120 36 350

-03 0® 035 7 1

- ID 24 14.90 19 29.8 +02 £76 118 ... _ +04 4.65 3J0 43 ..

10B 0.67 17 139 -05 180511.10 3 4 TOO _ U6 492 5,7 402 +05 1® 0 74 7ft 123 - 285 1 J? 4ft 170 +.10 2705 1X90 171B0 -00 408 200 33 22fl -04 125 MS 14 71 3 +01 298 1.32 _

-.13 1165 X4B 03 ?*7 -091101 7 JO 0 7

AOU 070

CHTt>» 7®

CwCat 665

06SF 1210

oesu :3i

DFtoBT 1.12

FfftlN 500*

mutt- 1 19

HwPta 2

Horn are

bertte 104

Mat nr 2fti

JSBBt 1.49

JdSM XGO

Knpd 408

Koras 288

Kepi® 205

Mdro 147

N3BS 1.70

oScF 1?S

DUB F X1D

tMW&i 237

Facto AST

Md( IS

Rdma 885

Semtco iftl

SULbHi too

SAOF 12®

Site* 334

SptoT 248

20.50 |& 1.45

TkiwaP 251

UC 073

uoflF iaio

IMEm l.ii

UO«ai 1®

m i3i

WigTM 1 13

-. 1.47 +.1S XlO -30 B -.10 1X70 +.07 3.M -02 137 -.05 12b ♦03 100 .. 232

♦ft? ns

+ 01 204 484 300 ♦ 05 0.60 -.12 XlO -04 510 X14 ._ 0.63 085 + 03 2J0 +.03 2J8 -01 2.73 _ 0® -40 1X40

- .15 775 -06 3 BO ... 002 +XB 3 BO -.1511.10 +.02 -2.49

— 2.92

— 1X10

-02 5*0 -DC 334 -50 21

-07 IS *02 X30 .04 004

— 11 TO -.01 1.50

-. 1.45 ~ 1.93 + 06 1 02

0.1814.3 40 2.« lft 14 5 1.85 21 ...

5 13 _

094 35 127 003 5.4 „

250 20 433 0 7DX1 .. 1.02 XO 1*7 020 IJ 9fi 0® 54 ISO 1® — -- 1 97 _

520 7.7 12.7 134 20 1.40 -27.1 OTO I I 402 013 XI 1E0 044 120 _

002 23 131 046 20 _

1 24 104

are ._ ._

370 1*311 1® 2ft 27.5 1.71 4 0 4X2 0J8 99 50 133 13 SI 7 013 7 3 20 4 1.11 _ - 1.16 £7 2*2 X*0 10 15B

2 11 1X6 207 ZB »0

1130 XI 301 0 61 ... _ 1® * 7 14.9 are 14 17 3

3 78 1 6 19.7 048 2 7 1X1 053 13 113 OM 41 302 0*1 04 ZO

DFBB

tom

HaQA

Ta TdonA TeknA TTuCTO TtauTO Wit*

26.80 50 20 2065 34 05 13 52 1170 21 70

3330

052

6330

+1 10 *620 1923 *320 61 JO 27.15 -OS 23351110 •1.05 51.10 19.10 -0015 76 OTO •JB 1934 950 -05 26 20 TS80 + .40 55.70 2000 +58 2? JO S60 ♦00 2X30 560 +00 800 095

• 16 3.90 I

• TO 4435 1X48 +.14 008 *14

•1.10 16790 4X50

• ID 4X80 17 JO

+130 30 17®

+4 187 40 8070 . 63-30 3*30 .96 35351180

20 49 1.4 190

0.7 as

ZB 74 1 B 13ft . 141 ._ 1X9 20 104 ..1X1 .. 17ft 1.4 600 1? 50 30 205 ZB 1X2 Oft 14 10 - £3 240

AFRICA

SOUTH AffBCAlM* 9 /Rand)

+ /- Wgb Low TW PC.

ATOM* 31®

AEO 155 AfcO 15 AngMn 187*

Arogdd 239 AnSml 93®

AAfial 101 AnggU 26i*

Angdn 7®

Aneidtei 2160 AvwUd 3 09 Baton* 29 30 Cmprai Sl.rOd DgBCoi TDD

Drtrto° 2fi.7sS

SOOTH KOREA (Mar 9 /Wail

ssra

LEQe 1145001 fW^t 57.000 SiTSe 71500X1

SaroEb 87 JOO samghi sjoo YLfcong 10050

• i- Mgn Laa no PC

-300 12GS013Tffl - 1X7 +300X30131511 1.4 21.4 -350 24.86* W16 1« 150 -1000 77000 36011 10 84

-J4D® ntOB 5S4HD 02 225

+000 96.400 S££ 0.7 726 +80 10960 4.518 .-BE ♦650 SJO 7.500 3ft <05

TAIWAN (MW 9 /TWS)

.. 12* 90 1 9

+50 S8 3750 £0 -50 8085*1® _ +2023® 16 5.3

+1® 18 3930 1.8 •JO 5X06 7X52 _ 0978 42. GO 25 _ 11)5056® ..

tH«U»(Mar9/Blft)

Mrtf 282 BpO* 62 BOd-rf 4511 CriiF i«.75 LMttsf 20 Ftata 440 SnCnaF 7® SaraC) 103 SmOfeF 1X50 TdeAs 1975 IWmf 59®

-18 354 145 -1 154 26

7.® a® -35 * *40

42 X30 45 £40 OW 192 124 26

87 X® 22 930 132 1X50

'05

F*rnd 6J6 Bated 2075 TOa » 1XBO G»» 4050* 6F5A 1050 Htewaiy Ji.Ttun WrcU 14 IS/ 1.85 ECOR 1 3ft

amw iox£o* nmc m

nan Z25 JOGU *45 jmc 31® icon 22&® mate 88® M&AH1 239 Utort 1B1 UtrC&G Xl 5 umroo 1® ItePVrt 1350 NcOeu 144 X OovAH 57 JO PdSrtl X PwMB* 140 Premfip 2J0n PrwPl 3&® ftaattn 1170* Rmtxtip 4&75 FfcntoCn 27® (tent 9 SAW 21® SA50L 2&JX SlBtel 157 SaoeGp 17 StalHte 4 03 smrH ® SnthCG 1X40 SiHel 18 Sons 1760* TTgOo) 57®

flSa JiS

-TO Sire 15X9110 + 20 Z8.OT 6 20 50 7 1 +X5 1850 850 X0 17.0 -5 299 1 TO £0 9.4 +X60 310 17450 X4 20 7 -6 50 140 64® 7ft 6 1 -20 107 » 3 A 103

+500 381 £0 1E7* 59 1X4 -.IS 1355 4.90 3 8 7 4 -20 67 16 90 -

..10 S05 Z8J _. 30 -TO 55 18® 42 9.1 + 120 V4 4 00 49.1 -6 11(30 ta Tl _ 80

•05 -41 18 sao

+55 40 21 3401

+1.05 22.75 225 —19.7 + 65 80 16 9 1 40

-231125 300 19 565 -TO 33 15 X4 28ft

+20 1*90 7.40 84 180 +1 62 20® _ _ ._ 1330 500 _ 14ft •1.70 33 1420 1ft £19

+1 1X75 4.00 XA 62 +05 £40 1.45 _ Xft +.10 104 Oft? 7.4 4ft -1® H420 45 40 ._

-520 -271 121 10 31.7 -7 -270 122 1ft 332 -10 H X20 _

-30 7150 Zl 30 ao .1 523 181 49 S4 +4 10 1MX 68 40 70 + 131050 100142 4ft +.11 520 ISO £B 67 ♦08 6 05 1 05 7.7 30.1 -1 1WS0 5Q 06 14.1 + 30 23 SJO 3.1 12-4

♦1 180 GO 1.7 17ft

_ *104 40 15 2X8

— 7D 46 19 BJ 10

♦05 10.10 130 £6 290

+05 200 008 —

+-Q5 6B X® E4 74 ♦452025 850 IJ XB -.40 ^ TO 77 2J 11.1 +1 31 JO iXM 20 SB ♦ IS 12 17D 4213ft -JO 34 IS 42 93 575a« XI 84 •Xfi 11® 205 7.8 52 12.50 &D 90 +08 tl2 440 _ _.

♦070 ® 50 37® 3ft 100 -JO 2X80 9J0 30 96 ... 22 10 75 12J 3ft

-.ID3U0 10 30111

+1 50 83 BQ 33 1111ft .-6X50 a .. M ♦1 35 10 >. 77

- 10 1X30 500 30 190

-1

-»

-1

-25

-00

-1

. *7 - 40

AMERICAS

CANADA

TORONTO (MarB/CanS) Apmdose

— HiiB-Fiosanngegeaiei

nagened * £> dRkm * E/ s

iTOXaEiaitNnrtfiLfiS

Lrt E>

129915 AMOC 1263S2 Aflrfcag 251294 AgrUn 566355 AoOB 530875 AB*£

+ /-Hh* Late

1265 +4 2x7 11H 89 -4113 401 12.15 275 1105

ar + 1S142 11 3405 ,5 39 Zfl

£ FT Free I

hi mfaND IDN IU Saw pu Dlfil

rraorra a iai«MiwB9B0in irorea acw 10 mi •*> 181 770 0770 te te (TO ■BMte o -44 IB1 77D 38221.

ble

Kite. Sinue has been of which J® profes- tfaer shift e.

5s going Novotny, does, not for a pm- t present e next 10

I initially about 4u(i faction uding a

1 unit. By ontribute lion.

’fcrts are f armed substan- 3 time or

ifet waa to 1.9 per prod- u. and is ■ent next

f this is icel and there is procure- ’ as the itted to

2 domes- 159 light he nejn

■j— ■

financial times

(

»i

? D

3 n M Kru Nw

.--Zr-c Ar.-Vi

•». -•-•A Vfe/'

WEDNESDAY MARCH;! 0 1999 -

4fgnaseUsKt!9

NEW YORK STOCK EXCHANGE PRICES

rep iMtea

m pi m

t e m

«k

- A -

X,', 14% «3 nj; zb%au> b% «■ ■««

Xh U%ASA

SOi 1ft «.

KM ftMae X EfiSHtd 5% lGfcSSS*

43 K%«L3 li% TS^UlCRhi • f 7% *su &»o* i r^ACUWai rf fan Bee Ijfcxrina 1f%A3UBen l&ACOCB ZlUtoroEjp H TT% AlStfc

33% M%««a6ip B% ij'pjcw’*

mu M' 9

05* 21

1(8 20

as) i4 D« 12 0« 41 03 15

c* i2 SSI 104 063 U UJ2 117

IB*,

19% OijJera

*3*4 a* »*«

H 03 /Stop

IB X* 3*. 6 SO lEV

a km a*,

9 401 Ml

£ 3

a ® »s » % a su M

a 34s i5*a

i ibo n

41734 17% a as i9|} i» no i« <2 M 101% 163* 13*4

— "1»

B Sft

28% 29ft

mt » *

19% 19%

11% 175

9i j <jO|}<aa

IBP*

AGCO

I7ti.fca.fles 4s% atAC tn i*%wwFn 18tl it**- 1*1? (I.lAUsna rtSwiot

J*% >3% M 2nd

OA XAustaAr 30,1 16 j tor* W 26, i, i«%Aton«

46*1 *7*1

ift «fl

El 31% Sii *% 37-t S? V, \ -A

.» „? .5? ‘J

BA lftafcfl 28% IBABCaA (Aissr

34% iBjlAKTJVi

ng »%«e7:

0*u

3% UWST

014 AHssiCcc

»ft 71. t*

940 U DIG 11 0X4 T 1 371 13 960 25 <1? IS 06* 32

art »g

3 ft

ti\ a

.. .yAWSE*.

S IBt'MMrCS in 57A «*vc « 47A r%*rf*.

31% U« ATOSM

11% IDA AW >

«*• W-VAKri mA x%ia»«

41% ISpAWmJ *B*i e5«kh Hi 30% A13 ft A 66, n%*o«Mnsi 71 9tmfti!=r

Bii artAuSFa M% i3%*ra*rw» 17*4 afaedsa

61 f, 4JJ.A B9K ?a% iBAArfteWi S3,\ 40AaE>>

118% fiVArtd 79 uAAoCraf Ufa 3Airtl»»

9 ;rAto*£»* 56% CJitoWS* £1% 37iA»tm IE% 64% AffM i 11$ 7% Aw BOIES 3A n*»4r^vr 24% latjAnWffll'j 34% aipnwai *A.V BAaenei

91 1AU JmCdUc

9S 06 IX £7 1 58 US CR 15

OBE 12 331 |« IE 21 9» C4 075 ZD

25% 25 ji

tool; tdl*:

Cffl 09

iw 22m

«el*

3331997 uf2 - XlBDH 7 S3 5}; 4013^ 8,’j ID X

4J*4 SttKC

2l1j :raSW*

49%

A9% n%AT!=?

US J3>i*Mr,Tl-

3‘- TJl AmSU"

fl% 30% Arif.

*4% C4%sra3io4' 33% i:*ars ;j'j -ti^tryta 16A-C.-I

ICO zt

18% is*}

^ i

US 3*1*. a a

?r| ui(

ft I?

79% 42'2Cr£M>

X% liPjAauai

7SA *3*. tv S V*» 17% J3K7*

10* AAJ9 3."1

S\ 12 tcirfi±

;i4a»:u^

a S%Ap:i*i»*

w* *<S*«-

7.V 3*nw

.-8*1 2lSrlr-=::;»

»*4

;7. 2 i)ptiK 4*4 j:f.T«i 27% 13A«RS> i:h '%t-ie5>

17 iJjWflj;-'

«% ai-.ee*?:

«»; JiitT i; :*»i« ay 5;*.-«*t>.

Z7- Z: *&.**• 14A e.,4jsrjffi 42% 3

:•:« jj

>a u

236 /*!

25 4916 3%

’ J 1

23 «E

: aa

•X

■ ~ C‘

2,V ^*2 AJT53 ■ 15% V. :r«*

:’*4 ■’ht.&.ti

«*4 oA'ia^a

*9 K*i»>

!»% 7***(C.’lW

«S ft to

B-

n.i

)4 *- 3|l

3*4 13 !{ 14*6 13 ‘i

1C 11 « 11?* «S

•:ic o* 2i n: :*.;

ts i!.9 ®

CX 14 272

o«t 13 lies 35

■CJ 65 k v.r. :4jj

riiKH 1% I9%E3AC£ 53% JtABmiaj «5 7* Study 16 iUSTU^W

«,i *4E»*AJ11I

<3 aVBBB=

ISA 45EwT3ft

*la 2a,’( Btra top

130% 5^l9d».5«

5?jl a After '36.

3* Sate; 3m i

*9|< SBSIU3

17,1 8%EOrtfffl

7% i A Bane

6J% X%flJB33l 7# 4BljBWJ 40% 26%BB£Tft 46% 25% BCE 22*» 3D A Boll 1636 8% 6SHEA«*i

10% itlBeaSoAi M »taS S*JI 40BedDBBim 49% 24%BectiDi a iSB*tfno

61 A 1**2 SiJWB % 777. W3» 3% 13JJ Beta A *65 r%Bono *8,i 2S% BenauoA

A %BM0«B

6400*5800 BemA

! U U IIBIB 3!

cn •■; i: c* :*,i oi: ci a nS E*3 12- 7* a Hj HA 3t *.•. «2 31^ 33 ;5 mire* xi? :a as n w:? u%

IE 26 061232 a/, 123 11 U 2257 Arjj *tn J( 4345 OS,. 93 25 12 314 a,'.

;a 2? if *s 115

ca 13 12 2130 9% C7I *fi id *U 1ft 22 1C* aft

015 10 321150 18% B III 1% 005 1* W55 3%

10* IS 19*1 US*,, 116 16 64 36)1 n% on IB 22 3009 29,1 051 22 a 999 O/. 152 7t 100 21

0 73 9* 2*1 7.’,

0S7 105 M «t 050 13 H 3299 *6li 06* 1J 40 H7 *P} 03* 09 J71IGB9 27% 1*4 »1 n 327 15% ID i8 aiKB* S5% IV >1^

31% V 1

36*4 37,i

il% £2*1 79*A

<2 J,S

fft 87!) 21% 21% 113 115

2795 ISKBmff 17% BHBbtiM 99A I7.i Baalflor 60% *3%ftW«

srs 3AM92r

U 50% aarami n .

17% 7,% Beam 16*4 4% Brh£

*) XUBOAKI 34A IMiBMlWa 79% 10*2 Slonx a y2toi«oc «5%

27S 20il ta<* HR. 19% 9.» Mrttt, ft B^l

9lj 9% 9dn*7gf

SIS &%*»*•

i2,V ftawmfl 1?

a.'. oifMew

9^4 29^ Bnang *9% 22% W*C 6% 3%BenaayO> 7H8B4ICMI »%8*Sa 31 A Been a 73BPAno(4i BjJ B/KFA

rftBiwSi

34% ftBfMlft 56% UilBigSi 31% ISftMart*

St 44% BMjSo ll*% E*j Si AAi 16% iAErhulW afi 14ABSM 131% T9,} SI

x KAtanca

li 6% Bra«S 71 49Bnif:nA x% si%ai*oa Sii ze^Bifai

A sAbrt

K(i I28MM >

X iMiMilM II SuctejeR 25% 11% Buueialm 20A 6%BwAW

1*3. n% Bait™

8 2 a%8B»i *9>2 SABirfb 15% tfiwnp* 30<BWo*a

VBuDalilg

OK IT SKCa 46A

031 13 V E*8 18ii

0« U 16 1577 »%

04 0 12 17 41 r/J

6 105 A

X 7 73400

27 IX 2411

0*0 *0 55 SO ISA

52 «77Sd190%

138 11 a USB «%

ZSH 93 34 27 A

5® S3 17 53%

774B BA 7646 6A OB 26 19 a%

0216 03 a ICO 36%

53 in? 69%

9 10 2* 2EG 4%

0*8 10 JZSS 50, i

10* *7 18 387 27%

0® 62 » 8(1

OBB U «1 6li

050 52 665 9%

ioo aa*;** »A

oa 11 15 J46 77

1 48 111 IX ft

a » 6,4

006 n 745 4%

056 1 J 325376 3*A

a» 19 3*89 32%

a 7* ft

*91 5,\

san all

060 10 2042 40%

3® *9 25 21 an «H

3® X9 a» 11%

156 67 IB 5B9 a ii

oa 73 in* *%

1 16 14 12 637 ®%

23 ***3 aft

oa u tossrl a*,;

2» 41 a 112 70

2 928 511

173 as 10 IBO 2Di4

344 2D 75 330 173%

040 28 IP 359 1*

« 7

1 18 20 a II 59%

II* II C 511 64%

OX IS 19777B 38%

4 » 6%

a® IS II 38* 20%

0*8 12 1*6 15%

210 89 13 2S 76%

9 Sf 13%

' a I*ti BB oa IS ItEE 11%

a** f* mints 33!:

OS U 75 *303 36m

I K HU B 248 IDA

18 IX X,'.

058 24 4 m 23

3*4

Mat lmm

FF M

1 I E HBi BIpB Itm a*M #■

-C-

52;

10% CANTU 38% OB fa SOARn !1%DIFInW» 1B%09Coa a% SCSI*

^Hr*1

358 AS

12 153 2* .4 a* s

. „Coe«HRl

31% 17 CaaPOc

1*0 50% CpOntf i6 sAcaodia nft 2%c®sai«B6 83% 46tiCHftP lUCaHB sUcaJCD

UCttmtoj? 19DatAf

x%snra.

jftCflMTT 14% emu lft&atidei 18(2 lAliCHcBiNG nX n&toft*

20? SbAAM 21% i3ACosaaBa 60% 39,5 1

12, ; i

OX 1.7 UK 02 0C 35

OX at 203 48 IX 54 024 13 0» 3$ 096 BJ7 030 19 OS 14

jo,; isAiBM

»i4

to cm cm

IftOBSI

IX 25 man

38**

ro% x,;cw*tn. 40% n\Drn»t » iftcnooEM 5ft SSlOsBBl 9A 4dwHSi

87,5 as ona*» as ftCUSf

*2% JSljOlmwl* 25% igAObh** 41% ®Ocvh4 31,’, £8% 9vn> 17? 7%0H«WX 12% CUOn&fena iF% TUQtaSraA e% *5 on* f>* 6ft 39% B*BCrt1 33% V*CW&a sa‘j 5* due 66/. MDSBi Oil 5SU5MB'* 61 A 42,iaws»« 21,4 V, ws Eel

3ft 2a%D»3

Tel 2BJi DrcC 26% T%tmsa« n’t 3*;S?0 ii.; slicam ji% 3%«7**a re cm

.6;: u.iaurf*?

:?% : J% calls tun tz VOCtr. 1V4 ftOfOemeO 3% 3%ito> 10*1% S-‘* Qm75fc v> xo

'Si; iA%cao

3j: »!»«"■

?!% iS;;C£W3co«

Ml* 2% toes.

M‘j iftCMC

J'.« =7.toa£,

;5% 4,*.l»rCa*i ii*. TlCr-Maa e/. cerf'j.

a mn n,

X 5528 136

1223 5

49 59*3 7ft n 238 1«A 14 *67 42% m iGA X 5787 **% 14 Z9B 4lA 7 712 2bJ» » WAS Bl1 « X

17 121 a *67 a 1052 13%

a a* 1ft

..a

13564 V

11 267 2EA

i*7s a

13 215 S% 31579 1BA HI 13B aw,

12 IS 37% it W 18%

18 199 J5,4

a in ns

12 938? 25%

a isn 0*% « 1(11 x 10 1*55 20A 48 SS4 J1

2036370 4BB,

IBS 1X% 134ft 12 12

ft 5

a ::ii

C 42,!i

ft ft *0% «%

11% 11,4

ft IS

15% 15%

ft 91

. .. 4

14 959 8A

15 1 21 ®% 12 117 1%;

080 29 144 11 PX 34 050 7 0

oa 2i

U4 21 120 IB

081 no

246 *2 040 12 180 01 914 02

07? 11

096 29 OS 93 016 06 0® 06

18 1138 Xu 5612563 «1A 42* 9%

144 7%

M* 9j.‘ 8 161 V* SO 571 **A S 603! ft 14 SIX 60% 12 B549 76** 337 7S ffl S* 59,2 V 461$ 21% 17 705* 30% 5815376 uTlfj If 5185 17H ZSBW 63% U 7488 9

l£ 971 J3^

*£ re?.

8% B% 59 39% 76A 76%

ii «?»

x b? as s% ;*1J 3i;

Qffl 38 ie if 756 7} 130 *3 7*0 73 1*4 I T . 0* 91 920 09 02 97 OBJ 19 016 05

-A

•lU

m*: :£%toCJs*

5raCccO*i

ti t:

73,to»il*« c i *0.-:a5ii 34% TCWAS 2% •;%C:'-SS=,i r. *6%C=r=J !"%0artne»

19 74 3442

33 1%

"7 «A

116 B%

ij 4 1 4 ^1'1

tore. IT

!**» ElJ'toroe t il abim

TJ.j i‘ Tipto

j: cxpts^i

;-.u»=5*»

;•% l,i UntwA

»% a,'.

■ ?**?*

towsilifi .. torfcv* iftaas* ■*» 29,; toots l • it»aw tssS

c*. ret Eft *n;i

. re%Csrafi» 58% ECrnsM 3% 3%0»a 51% iftCocnCB*

KAOsrwilMi 23% 5,1 totUK 38% 2iACas%

«% E>eCrrL05i H% re%toeeO r-: CccicSr

s’: tofsa

75% 3*%Ce*ClWA

I*;, t 'J Qo;

37.; 2'-'* Crers »

E% 11% Caws* i6% :! Dux 32 ji l!,‘JCSSCTl« MA 74 Own* 62% re^ftwmeii

ift n,(craM*

*8% C3*,C-WIW 15% 11%C6fcS1 M% 30jiC?S

i; SHCfirta

17} 0C«Ara

E85 15 Mk*

ore u 154 72 19* *1 13* 52 055 26 211 46

m 59

19* IS 088 19

056 13

'■V 29 0*2 2*

0E 14

ore la

OX 08

16* 53

040 IE OS *4 , 1.60

oa oa

1J0 17 , 110 27 DBD 69 DS M 1.16 »f oa 05

S% E%

nil n ii

V. U

17 17A Z7% 77/. *0i’, fll. 11% 11%

020 18

-D-

22 i£%0PHfrA

18S% a%Mrtn 50,* ry QBAUSOOJ 61% Ji/.DM*. 55% remra Co

0.04 SO

*SA 18% 16% W,; B8A B8A 3B% 35% 35%

G*% 2ft Dene 71 1 J 4013 OlX*

^ 3%.

»A KAMm «!: 23% Db8b Op

a/, SJaOMJPrnB

54% 20,'. CUnOIOr 56 A 19% BeMd* 44% 73% BM

XA A/.CbtwA.

«% SAQtm

5B 5%

ft SS

98% 7ft 2*A 023% *A 4%

27DorflJ» *«3 JI!i0w**j4a 93 ft Omar taei ZE-V 19*1 Donum I 48 XjiOM^

39ji 25%Dns< 107% /4fJ DonOl

9 eiADMJna X% 17% Qnqdn 44% hAdei

ii A 9AOWR15

Sti 8% IMtfSiS 49% a% DTIEngj 91 n%0ul«H5 2<i'e 11% DuCWKn 71 53,'tDlMn*

S iftDuttflni

Xy n%0&eCA>'

3 Si

*v*

H0% 87%

47.1 4KA

ft l

84,; 50,’, tt*W 39 mADucMI* S*2 30 % 0(104901 77% 9% Mf

230 ii 7* 65 07* 20 140 26 2J6 53 290 60

- E -

FdMUG |

THBknrapw . *8% an *m a% is A Bar Oa 54 aoAats*

7ft <Bta4

13.; 6% am

m>2 Mac

*6 9ilE«B«nn* S,’. 54A EflBrfix

a iftEma**..

BS6 21 618 07 I® 58 10 42 I7C 28 «76 27 IW 21 9B 11 104 41 060 14

a,'.

oa 09

06D 13

105 IB

049 61 1J6 23 1» 57

S8 58,'i

»A 22 \

IN.SECTS (Pan European Sector Indices from EuroBench*}

Tlw MJ9ECTS • pu Bnpeai equty see» takas flora EtaoBmne . cere* crOy Sna fghd sftete m dx» dong sactoral bfitattuniBiei prtcwTurwieca Tbffrtore. fte iwtcas irahr reffoseifi |h core ^acaor n®. UsBq itr orctaSon at ezdi cons- Biert w8i the Mdor Knd la erfti *e cwHftjenfc.. tn eem r-ift'icg B tctoewtl enartig natrut AHjflfcScn »t* iftmg 9ie

MflsEdDinddngA

Brew	3DT	to.	Mm BS68-7W	BI	% tta**	a*D nw	sun um
IM3 7927
I3>	toaasi	SB	BE8	sas	3*UB	M	4*	Btfi	Wi:
eas	tecreBSB	IS	mt	mn	BBSS	-BS	IB	tsu	m ea
iaa	OaapeBt	a	2BJ	ma	TffiJl	■M	£S	mn	lido
mi	M» BJOCSIS	ra	tau	nw	CM		■U	IWH	*®u
u	B3»	as	nut	au	BBS	•291	«	w*	tsss
ares	SklQ	ea	e*n	mu	as	-6*	•IB	leuc	nSB
BUMS	(tewaawHB	m	mis	mu	)M	a	453	WW1	!«C
Bpmi	tebwtoB)	e*	ni	W35	iQO)		48	*aa	12856
arc	(taaz3fl	ss	BU	mss	3M	■as	ur	BU	(DO
areal	RteJta	s	su	SOB	SM	■sa	■us	aaa	KSlB
turaBwdi 6 a* Mepcndcil Me nrcredBi las«} to Bnaafe. W) Wwmreton on me BUSTS m Emend) Is a nSUte in WWBtfilBB-iCfnUCOB ^ BflfEHWBSCKJMB. A free dally £m* 5flr*la c® K siteotad fe Fa toi ropy iitarranai nj cwtedooai and iumBtowstor nraOurestal + 3S2SOJ9WO or te + 322509 1389

“1 2 T3>f£manC0 15*

755 EnpC EnatSoi

24*2 i5EsHtna

17$ I5?bcato

77 A S%Exna«

BWW> _,. BftflUSO 56,; XtiHOfi X% IB WW D»P i a 7%b>

7*il 6%FPVMf 40 rsilMDa 23% BHniM 9.4 3Af«Mlf

65 [i 405wi»an 1*3 ft Wr«t flA SHFIMB

»% a? IW

74 64WH75**

34 Z7,'.F«Sr

% iirenu ash aft*

47S anectPH

3% TAfWOti 47% r%HA0* iftRMBI 13% TS%F1(iMmi B»s 3J%IW» tai *8*. hco. 4ft I9%RSW 66*2 29% Fnfl S3 2 ftftTJB#

■JS

47% 2%Fecfl«

32*. iftfoani ay iftftafw

reft 50% 171. 1 isii rtfraaatEo 57% 25% Firafts

»A 26** are i 11% .ftfflcw nil .caste a* i ;ft n% OiEf 13 ;:A ft toeAEfl 5ft ?*% o*»s4 5ft 3,V 6*?MM re% 4fte»n4> 73% OAOCK* U}! i.-|C*Trta M-i ilV'aSuD rjl, rtocSiP.

53 TikCtol 3:A 'Wt^ftsn 32 ■, Li-1 J3**m I

s:, s:1* scrap UK A a,; toSr > ■4% 7% touts*? iA'i 3,'Bti STj J7‘.5r«»» rr: B-.ioftu u\ a'.i-aasf .

a: Sertc

Hi '*<'«< li; M'EmuC S\ ■O.lfiBRC*: a% ;f % i'eLfll I :s% ■*■’ 39

p ;'u '*7*2

5!i :-{i5r :sr5o

aid

i ■! W;-JHP'’«

-■:i 5% 3®rrs:

C'< U'j&W J" ftitrel •».; u'%3uuri

nC-. Til.

i-i 14% SoarCe •ft !.*.Si=1CT j'i ft’SMiai lift w! ' SWEV • ii S*j aaaii 76*4 «, I SWHI. 5% Sl’SPCiBE* *7A 3A 61V 71% IPGoctW

{*% SA Scree *7% i*Aaw»

Ji ttji Jlfla

jn- jijiaAsaw ts% ton at up

3.:, 10 ton MB

»ft JAOopFa

ftdiffr.

',i i,'.aa«M

7“4 X'jGutH

£3 25*2 Gk**a£P

2 ft iftOntoBtf

Sii ift ‘Win AW 57% =-o«n.

J?lj '8%IWWN 17'j Si'.KMAfC ift HtTCEine ZPj B%ir«Wa«' ISK

aid rtnnfi 53,; a%Mj*a»u 44% aUWKOnAIH tl!i *l3H*reCn Tft i:%Maoj0 M? MuKxfciCn *6jj rijwww 385 6%«wre? 2ft n,V>to*fin 55,1 27% Hams*

«7% 23Ban«

25*2 17% HUttrtWx ® 37!» WTrfi I 59,; nimsan*

0 Sjttoim Isil I]|]ittns 43ft Iftitmafl. 41% 31%HlfllSS» 4ft 22HCMM 40 a^twrei* 61% IfKBCrfillP TtiJ 7"Haarnh 7% jXlfcOBH V. 15, i Wm 151} 5%Hei#eT 81% *8b Hem J*% l6KWift1

51% •*% rtcaes 75% 5 ‘

B3J 47ft HMW 31% 7,

a i?L ttoHi

0% 6AHWK

io afiremfei 28% ftHKbUK 18? IS%«»(6H? «jl *1 M*nO 23il ftHtaUK

40,iHatH

Cl1. 27%tte0tfi IO,} 5HgnttP

15 7%HnaM

16 jmtmi 7B% 5lA7tHMAOfl %% 5ftVPn*a?< 37% EliHTdiaM?! S% 25|;MBM 25% I6fa Horsaain <

22 9% Haw 15% SiiKsdtorb 47% art WM7*mu S3fi B Hand I 17,’, 1% HDMB

n cainnf «% 33? NUBS

19jj nftWfllOOT

.. 180 E% 17%

25% 9% HHHIgC

BA mew

u% 10% men Be 99,1 SAKWIif

ia% rewiimeai

a* & i

Si’s XftWff 31,5 15% MU 5s% BirWai BOS (5% beputf i ae aftkena 41% JOfttneipun S% X%UHBifl*

10% ftwptw

Mfi M% MO* 1*il 4% HUM 14% 5 « Tecta

U% T’JmiCg

13U

«% 24%Jnubg

4% 1AAMAI&

78% Oil J®1

U S!l W 8*! »,l

S *77 J*6 a»& Xli -7,V

092 IO 71 ! !a J

bob 12 fia sS all ffi

IX >9 17 T 777 71% »% 70!J

era—

saBfctspiia*

tw- asw

-T -

16% 1%TST£!B ire. ift TCf to« ■ « ftTCK4SI* 91% MX* to? A

5? *&»*• 512

83? 3ft T»^

»s 21*1 T«Ir;, a,-, JJfiTktn AWX

IB KT4SIU it* 4i%Ttfi»r 1E5 E7%1e«35»

60% r%T«"*». 57% UiLTWMj* -.91! ft Tc«AG«« *j5, Istffip 47*2 27% Taneco ■ TOS 3f%1ejS=»W

ffS ITTpraTme

;ft TjMeraCp* 13U jSTtralu r % TATewp S!j S%!rea:« 6*? 44ft Tarn

«% IftlWDW !£* 43%’iWl 59*2 StTesaPacf Oih iftTtOQ,

g5 IftiWCB m>1 ii Ttofoni 35%

ij.ipsrtaa s% x%twoj. fift 33ftTdss6Ba*- XU lfcitWnW1 17*1 tsaa

r',2 77T*SD

3*% •lEjnsHes £7 SftTrtami C’J AjJ.'TTllrAe

ill; Tamil Bi iiiHwap ift iftionRi X e^Tsresr,

uVTcetS: a 5%t«**r

?W Hh'cZrX re fa a'.T^xs 4Tfa 29%Tcn9Bftj

<% 251-'.^rrt

Cfa mb ten Ob 3% lSfitrw . «t% 4f%:acs 0*4 iJftTssuSp?

B !3%7jTJtJ “{i a,;a««wnee 72j! iSfaHraWf

M'j R% TmuSapi •i :i7jTrSOS38

ft ft-rnsf a, S3% I7TWCKB ttft 2**t>'?CaJ

r 1ftTV»*rtB

42 T’.C.rCS

a-i ■.1%1'iiftA reft 44% "'OJsrppB 1

PtT aAIreSS Sil 23AIKS 51.-i

42-, ft iltoi

3i -3;i’rart w'J icilsaff ft

3 :t*j Ii«dw ’ll Tlt*>o 41

s:% i5iea:c*«

r% IS ‘.zr, J3C

r?;;

x TftTiurtA

3?:tJ :«?|5T|

uSSflCD >

c?:- •

»C li ."2 to;* 4:/. w, ur=7.=

AT.}. 1T,.«e*«r 3ft 21U9W2* tf'i riAlnf-r 0% ‘fti.Hi!*

73 UlTiASJl 33% TB^WSst

a sftaeas* £1*2 MUttJs: a? ft'.urftti Eft ftWW *>: ftluwrv*

9^: ft^rfCes ;?% i#%aakw T4j» 9% uoarffi*

>5 i£%iaCa«w* res asiNM

54, i 41, ‘i e*to*

T3|*. W.sanwt

w% reiiidfipa*

s% iiftusrasr'' *7? ‘

a'.uSfccB ’» B7UMT8C* 2t TftutJftsa nj; B%!X9a« 27% I3,ittof rest £

h res on wa 1% a ; uow CT-

O's 57% Ctea tt i5%uwa G*2 Alfal-ffljS 12jl 'ftUSS*! 71% TlAlfiW » 44,; os* 0% 34% USA?

16*2 9%2Stf*fe 4r*2 19% 153 H* a%; USX IS* a? sutaUra nfawtosi

»“ 39.iWraljm.

!• 12% Ht ndftX 31% 22 Anas®. 605% 4fi21*atfPaflB 5l‘J IrtVtaNM 18% iV.BSAtKsa

».i ■K.iresufca 29*3 iftnftjRsni «5% »%IIW«I«1 4,4 Uttnitaptao

34% 17|V Wta 0*6

4ft i,(«wans>

AV. 33% «

a a:

was Co

-V, 17%1Westl»

2: ft ftworea E% 41M8«taA ' 27'2lWr>B«» 37% Sfawetae 34% TOjiWSMPI X ift Bjertne 67 JBfaWrW 75% JuyiMnta. 25ft u%Weaai * ! 9f, nut 5*1 16% Wes « 40% auArw, 17% 20% awe « 40% HOnpi 6% IWUtra

37% Aftoha »iati 59% a%WaA>

■6% ftomnaasp 34 TS.faVtafP 14% i,; wbeo 14% «u 9fal

37*

104ft m'l-Mr-'

7% IHmavCta «A iftwmuui

ic « 3S7 16 14 1196- 1 :« 432 ■

95 Ji CJ 26158? «J*% • U 127 50%t 28 « SIX 47%

a.-. no ie%

97 433 W%

S7 14 ESDI 2ft 2i 1337 T9ft 19 32 485 36

ID « 26

57 55 686 106, J

10.31 90S ....

15 22703 SB 22 ffi 2KB Etf.

21 a< fA.

M4B..HA .H5. \.-i»: 40 13 JOT-.M v£P«k IJ *B BB —

451W5T

rso

13 Of

■a n*- 36 «ns«7 u d rev u »an iB 22 re

** 15-6*30 IS 20 2»

a 1 a

75 W

B.25CB — _ ..

0 ID 1« «j! 4ft SB 2b TO 8M-- IB «1 ISF 77%r W|r

is 5 S3» s%; a%

‘.48V

95 27 MEZ 17 1A87,

•03 - aan

m ss reas -■* _ _ ,f .

81 *3172

38 317 a a -E - *

U 5 11% iSS: «*•

27 4 7« Jft

. .0 - 5%

-R

■ r ws* -■»%-

21 XM- p»

- _- 29 __

774* IJ'Tftu 79 n ii as 25%. 1* 1JI35W 7« a

r-n% re% -- J- v-

I »"»• % ■•

96 10 287 73

49. 2 27 12ft -C5- G 91W2S*

32 r. *

IS 8, .7 X.

14 10 2303 36% ■-* 9B*»- 06 17 X0 3*] 2% 3p.*S i'

WJ 15 >1 S 3189 67 22 5436 17 36 4B3

29. 7 Xt

jr,as

32 *4 26! "TOfi J*S I li ' f.

4i 9 3 3m 20% 2D1t.»% . -

01 *610137 75% TV, *!.~*a •

ra sx • 6 3*i zr^r os a w aft aft aft •; f . . .

-U-

a ns" T5% of* a%- ■% 03 l (o*0 *8% 44% Af 4$ 59 11 *10 Bft 29% 25% -ft

U 1914(27 25% 34

5 are 66% 84% *E% ,

45 15 M99 *A 35^ S ^

f 2 W

■fe-

;i’

1 95 1* t» 35f- *3) OSS an

06 u 361 *3 3 3ft IS » (078 K 3*0 ai n 6Eic 42% i« «

.-0 T7

ii i22H-«% «ft aeAa-dtfrf 45 27 2230 4*ft 4!j} «*%■•■%■,■

S6S9 E% 3% 3If -ir

0J6

0*0

13!

__ uf <5 *»

15 79 !1£3 Ol? ^ ;*

106 2* IW A ...

11 I .502 79% re%

01 5K7 5ft 31% •»»

65 II an 44tt « %J .-1

42 1 1* 3% M 9ft

«1 K Mft K% I*ft

75 M4 K%- 14A

. • ■ S .3% a% 3%- Tl*--- . - - -

f,W 2S% 23? K if - S 3W MA 33ft 33% tt - * -

053

1.73

:»

033

1.1 a 47* .

SO * W6 19%

16 2*42 14%

li 15 Bb! 3S 90 II BB. IB? 42 7 7*8 ZB? <19 10 31

10 1254 1M

11 17 EBB «|i as 14 S 7%

12 *685 aid

iS 19121SJ 56%

9 8H7 51%

a* 0 a

19 a 17033

- V-

Df> 18 IS 1215 48 87% B% :A

929 1 7 S H 14ft nft . lift .fl

B* 60 221 8B% W5 tt% - 4|

3 s*a 9% B|i 0% ;-5

040 It Z1UEJ4 37% a? 36% ’If

097 17 X 50% 49% 50

3357 4% 4%

ij* 7.4 .0 an? 14 DM 12 20 1877 13 ITTS

096 05 77 4035 IBI*

196 12 O 12

01J 04 064 26 O40 04 0® 1.1 028 19 12) SlD S» 09 092 U 112 6B 094 01 048 19

63 33%*™. B3% Mli-actaft 66ft 37% HD cm

31ft 22% lMKEni »% 27ljVtolhl Mil 6% TBOSa » IiZlMea HAZmmw

5ft fan «c

8%2«qFdf

8,I>«bT«*

d-,

dm 14 sasa m 30 s iw 10 212 *a fs a E

048 u 10 907 3 sar on iisw id* 39 19 31

067 11 J 110

*(« 104 sb

oil 101 on

*3%

i^w^i!^?jr?B^j^C^^i'>Triiiiiii9*i!iiiii ihkm lAWiblr^WE n^Wusb. asm jradp

*A» i-M-OMOtaO tr PATt nata to 10.

ft FT Free Annual Reports Ctub You can obtain we currant omual iHports and U evailabJa quarterly raoorts of any companfaw on the US exchanges with a 4 symbol. To orU« mports ring (tntemfltkxid Actswsj 1-B04-3? D-8097 or give the’ names at the compante* whose reports you want and fax your request <0 (Inlematfonal Accessj T-304-3KM13S. Ropore* wO be sent me next work- ing day. subject to avaiisbSty. You can aba order omuls ai Mtpj/ www icttnc ccmf cgi-fcWW.

v»

FINANCIAL TIMES WEDNESDAY MARCH ,0 ,999

GLOBAL EQUITY MARKETS

Kobe Bmfc ttwpcrt

mn vbm tma mn tmm

(rusnq (yaa» ann* 1M44 m.17 109.13 X0I.1T mm

— — . ™ s rss z z

-■ «■ — "S3 "33 "SE *s

aKjaifflBeFM - — Wl®

d^swj S7M»pna.Tsi lo. W4J!0 ^Bnpp!4{ni,WM*i

HXSE

MRS

hWB

NASDM

Mars	Hat 5	lb 4	Har 8	Har i	Ur *
		UlK Traded	3,537	1540	1«
71*B30	034 950	774 HQ Hu	lr»		1.710
		net	xw	916	UBS
ffi.9+2	MS38	IAJ16 Unoungrl	583	569	600
		New Mgte	El	83	29
974B6S	86*844	BS76HHWUW)	55	48	86
MGACHHTTT		Mm	:714£XU»

RMWV

128273 127X47 f34&B4 JM57 1527a 1«KH 1«UM 11050 137J3

IftSE Comp. 604.10 603.14 590,75

MB 0»p 712.18 707.41 63852

MASDW Crap 233742 2337.11 229263

ftfltSEfl 2000 400 JK 3B8JM Mgja

■ RATIOS

1282.73	927.69	128223
PQ09	(V10q	(8/309)
155X85	1077.40	TS1j65
tsnm	(9000	P8/1/99
14780	95J0	M7S9
PV706!	(8/10/99	(14/708)
GtlJB	47731	61186
07V99I	(Bmraq	(8009)
75307	553.75	raiE7
(2Z	O/TIMQ	(22/4/SB)
7518/0	1419.12	251OLB0
[1/209}	(8/1008)	n/209)
*9X41	31028
(21/408}	(871 008)	(21/409

4.40

152

7.13

464

125/4/42)

52421

(167/96)

5467 (3710/74) 12366 (771 2/S3)

M ACTIVE STOCH			■ BREST	MOVERS		— —
Monday	State;	Qax	Dam	Hntar	ffcyw	Oafs	tor's
	traded	pm	dungs		pm	ctugr enge %
Ctataaq	Vwttnav,			Up9
AnOnLm	10356.100			tenon}		+ifi	+12.B
				CrtarAM	10		+122
ATBiT	7SZ5S00			Mto	ea	+S=n	+12.1
MfcmTrttr	6.064900	58.			38%	+4 Mi	+113
LucwdTch	6.021 200			Uaftft	104	+B	+101
Goesr	5353.400	1040	+1h	50901X1	47%		+10.1
aie®	S.776JB0			Downs
UotA	5,771300			PUftB	23j	-it	-as
PhMm	4.067300	38*4	-H	ItanH	1315	-a	-63
■ HASDAO TRAIUG ACnVTTY			Wage J7B.Ba.nW
■ ACTIVE STOCKS			■ BffifiBT HNHtS

jaRan

FRANCE

Mar

Itai

1938799 hjh Low

SnCBCMWUH

Mob Lor

IBr 199B/99

5 Uk U

Ekca cohpMIm

/** in

WiW 225 1509670 14773J6 14B9460 T72BU

oar’s nprc isestra fay* m i«cu ■ TOKYO TMUHN6 HCTNHT

13880 389169 BUS

Vokoae : 5SM4UU

CMC 40 41SL30 417X87 418X56 438648 286254

D^S Hft 42H4B. CW* km 413D1G.

■ pass nwmfi Acnwrr

98451 : 300,186700

■ ACTIVE STOCKS

■ EMGGE5T MOTSS

■ ACTIVE STOCKS

Tuooay

Stocks

bated

Ctasr pin 17779.(110 813 KjEEiUnO 517 11.376400 230 10£&0X 122 6901WD 461

7*59400 389

7,21 4.800 1000 MiM 630 6514DQ0 1270

Ityt

chap

+39

+30

+41

-I

+22

+45

Tumtay

Upg

Unman

Asb

SarjME

KiraDo

Dam

Ckm Day's p»r» Ones daige digo %

Zm*

127

S50

142

218

270

423

+16 +17.6

+18 +165

+1000 +13L5 +14 +105

>14 -60

-15 -5J

-2? -4.8

-14 — 4J

Tusutej

FIT*,

TateB

BMqu

RnaA

Ala

BNP

Aim

1.216443 50J

096053 *X5

038.008 ICES 387/338 106.6

73451! 3752 727532 4154 723J9SO 77.4

707 J(D 118 031507 1155

806600 2312

D^s TumSsj ctage

+05 ®*L

-0* SE +11 IS

-04 ££

+0.12 ■“

-? £5

-l!i » -1 "B*

4 0snMrt

GUI

Hfce

285

1311

214

1685

627

0*1 D wfi ctopt 09%

+251 +9J

+43 +75

+5 +65

+7.7 +55

+5 +55

-15 -65

-16 -14

-2.7 -4.1

FFSE Eurotop 300

1240

GERMANY

	Mar 5	Fab 26	Feb IS	Year ago
Dow Jones ind. Div. YMd	139	1.B7	1.63
	Mar 3	Fab 24	Fab 17	Year ago
S&PM.Dhf. yield	1.17	1.14	1.19	1.39
S & P hd. P/E ratio	3&33	38.67	37.72	2B.76

DdCmp

Otafe

wan

3Cm

PBramT

MCMfcm

LmOh

Suds Close MM Nice 46551 BOO 45V. 39.642500 231 19516900 301 18506800 lift 13506700 1041 11.488500 ISO >1522500 2S» 10.937.900 17M 16181500 851 6198500 *7W

tor's

+2*

+31

+«k

♦3*4

*44

+2*

♦2V,

+ff<v

Ifewtav	OOBB	DbYs	toyn
UP*	P«*	emoe crioo %
CUE Ha	19911	♦471*	♦313
CHET	208H	+4QH	+233
eapkr Co	104	+1(	+220
AdttwM	25W	+4M	♦202
CmSya	22	+36	+17.7
Ratnara Pom	39«a	+5A	+173
C8T ADR	111*		-193
BOO- JR Og	15K	-21	-122

Mar

liar

1908/99

99 m

Stocompfeta, High Lew

iib mb

6 5

1098/99

H# Low

Own compfedOB UgN Low

MX 47514G 478659 483609 BT7153

QVe aeh 4881 IB tort lor 472755

■ FRA»snnr tbadk wnnrfY

389606 B17L4J 931.18

Wong : (■)

FT5E 100 6237.7 62065 8365

Dirt M0E 6287 A xsefs tar 61965 ■ UNDOM TMHN6 ACTIVITY

63075 46487 08075

Vehne : 907,700500

■ ACTIVE STOCKS

■ KGS5T MUVtRS

■ ACTIVE STOCKS

■ BUSES! HOVaS

1200

1190

INDEX FUTURES

1 2 3 4 5 8 9 Mar 1999

Tuesday

Sua

Onw

Dam

Tuesttw

□osa

toY*

toy's

ran

ctonge

Ups

MacfcW

Fnseau

FsMC

t*to*

lluu

eanga

ehga %

Bnw

LufDai

SlemB

Dl Td

BASF

380301

3023B5

281.471

226368

220*43

32.6

IBLl

9X3

404

31.4

-02

-aia

+02

-ai

898

11.9

+74

+14

+45

+08

+113

+10.1

+84

+72

HTchM

Veto

brand*

DmhCh

HWE

192308

174386

171328

170288

154.553

413

453

253

82.4

373

+4US

-01

-015

+06

UOfiliO

HoBn*

Ur^+AI

SAP

MHV

448

280

1016

-2

-37

-175

-45

-7.7

-78

-63

-86

traded pm 21504510 59* 21.512510 167V. 21,475580 Z7V* 20537530 367W 19,138.130 146+1 BP Mam 175S5590 030 BBM 1557B5B0 1414

Rental MW 15509,790 370V Uadee 13509.490 724* Br AW Tab 12^95,480 557*

Two SIR SW» <M ASM

Day*a	Ttoadar	Qae	tm	DWt
ctwnQB	UPS Span hst	pm	cnanga	mgs *
	115	+2B1)	+293
♦3h ,4U	Ion Fartflng	84 It	+13	+252
+ln	Tenwna	B4»	+19	+253
	MtamuR to	405	+66	+181
-I	TnnttaDH	IM	+30H	+187
	Cop S»	88	-25	-22.1
+14¥i		4m	+4H	-183
-W -IS	Tokw 01	48»	-10	-177

■ SOP 960

Open

Change

High

Ed. voL

Open (XL

Mar

Sat

128X20

127920

129530

-4.10

128X80

127X80

■ mfcdzs

Open

SaflfUca

Change

wgb

Low

■ CAC-40 (200 s MW

Open

dupe

Est wL Open tat

■ OOB

Open

Change

Mgh

Est. Ml

Open bl

10X416 32,712 Est Ml

281.900 131.419 Open H.

Jill

■ MX

4213.0

42325

4172.0

41545

-28.0

-775

42375 4193 0

41365

41385

49585

1,182

143516 Mb 8.465 Apr

■ EOTEX

73050

72725

72850

727.75

+350

+2.75

73225

73050

72050

17587

1505

118,754

1.427

Jin

Open!

1 4870.0

1 to phvom m»

15050.0

+3105

+3400

WORLD MARKETS AT A GLANCE

tony

151200

150500

1998/99

mi-

lts 7U0 14820.0

37,747

9.627

117.288

117538

Jun

4B35J)

48635

47B8.0

48135

+10

-10

199B09

i Yteu iji M Ctutzy mb

48710

48930

1990/99

Mgh

47275

47565

48.768

1646

2402*9 liar 140394 Jm

7221.0

7175.0

72805

7224.0

*880

+875

1996/99

LOW

■J Reu P/E Dounky

Mar

7286.0

7224.0

IBGB/Sfl

••OH

72000

71410

19.725

1212

121153

15.861

iaoa/99

lew

if. VkM * P*

.. . Gengal 1675553 16672^ 1662553 2S48S50 230/98 1230110 1M/96

jTraM hffftef on tn pas IM new Bffikni accord coukS help BnsS put twnncyiumwt tfstunt I

M WaM 28208 29295 29025 2M050 4/2/90 amt an i/hb

AS HMng 5667 5706 5665 713.10 23/4/98 48980 3U8O0

43 117

ZS3 211

tafia BSE Sens. 3784.11 373110 364906 4260198 21/498 ZAK.16 20(1098

1 6 P CMC 500 73071 73681 72756 81582 21/498 55758 2V1098

Banded Is poetJu&t a* MB tagiqp un 1 okctm string on c * tar ween panaw la tw nd

^ m im.iv umao 41/oma

(MBf 6rie ri/i txnti Mte unary hatOauL QM, rial md ianspat seats rase wMta entf aBra eased.

M AW MB 118BL7B 1181N 117156 162856 2GI598 SB25B V1096 loT MUddrb gatas soar dae ft Bank doatti tame b rescue Sr second auecoam »*■

JUkartS caid 37942 38456 38867 554,10 2/398

a&ed rit tta nfia os Imata tmried striad mad it toe on daritg sear mawteag.

21/9/98

BUL 30 467923 477127 479827 61»59 22M/S8 359908 2/1 MB

PS 20 1079553 1100188 1107652 1429100 23W98 811*51 271098

ri iri B ri id JOtaoe sdtig md redceSoa at gpesm li Futyae trtaM oytawte

B IM fire 7070 w 7267 41LB1 STUB >851 5rtMa

Sriis edgBd Oead h atrirt bade u9dt& irri* banetod tou race* toeuaB *1 al trim

12.4

aaao

tae at aaahg gains 1

330550 3322.45 3346.17 388132 671/99

; Eunpem trotters troop Anuta) kt tdkmoan taring

2357 JB 1071/98 157 22L9

Bens Gowspa 9638J0 97885 94655 1229950 ISHflB

t/RetoBM it arif tring aMe UxOry* amstd vdto MF trid k> pnpvp natet

47SUX1 1CVM8 m

TSE lOOf 397.44 397.10 39151 47553 2SW9B

MMM Wrist 299954 300X33 308133 438081 10QS8

WESOOCtaitat 651140 650143 6415.11 7B22J0 22/4/96

tT*flnto§§ 348258 3485JB 3449JM 399551 25S98

fMf Ay weak kxteami prated and 9 atm gas oncte.

32491 V10/96 17 T75

250010 31/8738 533570 57TW98 271424 571 OSB

CHa GPA Genf 391476 391252 IStyte taper on no* tot aarittktes k> Boris 1

389756 489155 17/3/98

, to vntB again on Bwtea^

296095 14/9/98 fcatoate

13 124

Ota Shasta B 2138 2164 2267 5B5B 10208 2138 9/309 16 Shenzhen B 4X95 4468 4547 9867 1W20B G65 9009 M lattouterer oatets sapped to new km rih Stasftn B stem taeaUng pnkaa tecon! tier set m February &	283
MowMa B8 92237 93233 92279 XHgter ti ntianakai. +: to atari regtoiH nuta matters.	141X48 7/108	7JB.T7 14/1003	IB	IB
Oadi nsfadficPX 50	3543 340.4	3506	B1730 23008	SIBiX) 8/1 USB	IB	na
Dansk CopenhaganSE	58X44 56065	53367	77864 7/408	58665 971008	171	19
Uriaperiomed net td Baepe ttier shares h Db-feoD Mw Mnfsfc rireated. ari&tig to market
EDI* Can SE Gen	44521 43969	«	44702 1/209	34530 2/208	K9	oa
lUtimsUa am shorn ring 1/ per teti tt atenme riatmd mariat
FMand HnGenata	637300 633461	6237.49	BS7B60 9009	322043 12/108	173	226

fterouti in tori m bat* tl rbhg tlgh-toir sttto k) US hetrd matter rate) ad-tme k&i kr second sesoan

225 205

Frans SBF 250 Tfonsf, 263164 263548 278073 17/7/96 187110 1271/93

GAC 40 415950 417557 418956 438858 17/7/98 286254 12/108

SU aatM&tsd Bo tbf betav pktem tg> t Us krirtg toomsoa-CSF Od tans

111

&T M2 AMU 154992 153721 152221 194050 20/7198 X25O50 2/1098

CMXf 475646 478859 483959 6171^3 207798 389650 871*98

ectjmr tupoae cuMts mttgtal gn aatel wfttt ended IU ria Iri-amadB of.

Once ABWns OmeM 344409 333456 325357 340605 15/299 139X13 29/108 1.47 262

FTSEffiSE 20 2127.13 205697 200151 218348 15/209 75618 29/108

MoBdf5 vpanug trim el Sweat «fcg and good atjmki nsm sent manat Mptap w seanuar ttatm dbse

Bong Kong Haig Seng 1053255 1026359 10241 12 1181060 25008 860042 13/603 3£9 119

HSCC (W 0* 75451 72115 72913 177559 27iBW 57557 1096

m: brnl zr po tart OmaeridlnkriU ml mrif srios also amed IS »l Triasn eased 1.< pa cad

■msy an 500754 ■awig 5335JB 901636 23/408 377552 210m" Ih ia~

iUMwam amt atari tUU tgjns rm tent* tetri rrmtet sage 1£ per cent ttgher.

fetal	EEDOMl	542370	5(1869	538906	547X61 21/408	3746.11 S/1 099	168	163
toad	Td Mr 100	mm	330.17	W	S3M3 8008	2ML19 8/1008	na	IB
Hemmed an second tag rt priHahtg tdkt U pa art ita am n+ACmry
ur	BCJ Oami 30	■mm	35739	38367	3B6GD 20708	24651 9/1008	261	244
	toea Com U	154530	1534.72	152B55	765636 7/408	188329 9/1096
	UMeiGBta	246446	243256	346160	2B37760 G/4/9B	1878160 ¥1008
Use bom to atmeUp rite hated tritet ctee Agtar M aad id «nos tpecabtredsg
Jta>	NOW 225	1509070	147hX0S	1489400	773430 2008	1288080 9/1098	067	51.7
	HAd 300	to m	79036	•pax	2 sm turn	18X30 9/10U
	To*	118231	114775	114572	130030 1CV208	980.11 15/1098
	2nd Saatan	137996	134858	133645	M0X27 13206	1BZ8JM 13/1 MB
Sogr Cap's mtuMg plans atm at te taamarisn. tdtsg to atari b ts Mpm* tea b ita Ue Pomntxr.
Jam	Anmn SE	18414	18525	W	78525 8009	13048 1Bni08	n	l«
AT am/ fffi taros s tosacana/ iaestas ri/ed an be dories, toss la Asb Brit rigged sects toiec
Udayba	H3E Cam.	■gng	51966	51662	7638 27/2/96	2B2JD 1090	27	151
Boat/ tifitr. M mb; rim mtoharf M a® moy taefin aUfiad aoead of tombed Sabti rib ricPona.
Bfiadra	PC	457274	448085	432780	520400 2/108	2BUQ 10006	128	142
tibse ebrii m sag arirg an tea 0 strng pm aid bottsbd bp epbaen aril Bon
Uoocco	CAEA	81970	taf>(Q	82868	88U8 10/98	68667 21/108	H	na
Utetoeas at brithp aaxte ritual prior tear.
Pristeris	CBS IWnGea	12856	12327	13002	149360 20/708	97490 an 006	616	262
	CBS 0 Sir	7T54	719.4	723 3	84588 27/708	548JO B/IU9B
mated *1 ttf bang at stiggtdr W Steer Boad Ml prits to arxmaflto gam Msti arid b boost own
Haw toatob	Cap. a	215580	2173.74	217052	235082 3V30B	inUH 2/1006	511	209
T&caa trias mri passes ten apaatig nnd at totaev tecepa.
Mgta	se M-am	540164	539133	53776G	056487 11/396	223640 12/10B	na	n
Batts b ttedj; tries hated aria ctsa ttpta.
Hanoi	DdoSEM	177224	177930	178671	237068 4/508	135978 a/NHB	251	11
SUardatee m 01 puces. AngMbnmsgtm kestti tednaby gsnp adeakd gabs aOtt tea By 160 mris.
Ftttan	KSE-100	103703	101671	9B4J9	174631 3108	76573 147/96	na	IB
Are afcr Mata nmor sad tadS tarn ksd HP's mat! « tooted m nea few *eds no Pma jeapas 5 per ccat
ton	Ura Gen	1447.74	146463	144643	790161 4508	115850 21006	IB	n
Rfltohn	Mala Comp	199641	7TCT7H	201141	231142 25/308	1062-18 11008	135	142
Baialy tear rib a nrit peso and Isas of a pasae Otese rnaakll daakrin

SESM-STm

SUllla

387J3

144052

39101

145154

30189

14066

4J75B 19008 109U5 19/309

25320 4006 8BUK 4003

2.1 217

223 2X5

IHlUrtn SB M 5483 8458 18248 5/108 Ms tnaowl a (try td atrial tatig tetem	8140 3/309	to	n
Stofb Abfea JSEMShK BZBB6f 62752 B2216 89B3D 2DM08 409440 11006 jse are Q92.4V sets 9516 man amwa btzbo ibom JSE taL 72957f 7241.4 7T361 B942J9 2CW08 SM690 11098 Sms tutdesti taw but HI tea lamb, totted Or gteHed ptee Ata to* mfsrf to nwmto UntOy ttjpL
Sari Km nnd2n£r 57265 57164 53619 64095 1V109 OmUta and ca&a&o sedaa atriad tefier *H r teada motet Us doped rim.	28066 16006	1.14	209
Spate Halil SE 88122 87963 B902B 94762 17^06 Patman Otaa Bte*n earner tariad b tipi seataent n gri id supae bl b ten	61229 5/MW8 lai awratonart	163	237
fit Lanka CSE * Share 53577 53863 551 Jfl 78870 4508 Opted as tgcnabg POt aatiud b appose riH dsaatd.	40408 300B	IB	na
Stouten AftnoikCm 34496 34473 34786 396860 20708 KtlTO afflMB bo aatay b Bkssan eatied ktetiHpt b bum lack bn km b due b perie tetHn.	163	an*
Stotato id SM total 72E73 71856 72163 8(1260 21/708 94 Good 458123 45*038 C576S 323739 20708 Ibrtta trid tol It arnof corantetata a axons reeatit at aM tr triest erne.	60050 5nO08 331128 5/HW8	138	213
mate te&aPl.- 849X43 M 843166 327769 2/308 547470 5009 UhtdtB aam sarid to TSSSn Bcctum tom IP per not ndfe faarxUi IsmbutdOJ percent	161	193

BrtfdcSET

32956 33859 H821 55092 3/209

207 JJ 4009

157 124

Fltant Klg 1387*0 136133 133145 1958230 110/98

Cteerfbasr Mwang weak senOnstf kt Euwpe and Star dart on KM SM.

11X7330 90096

219 12

Tofeto	MB ltd 100	366270	3647.44	385010	4530M 167/96	105278 6/1098	252	147
Putin kraal td dscUeg ktaex rie kurid dmatd tr tribg ok
Vtamda	BC	376644	375157	370561	785692 23/308	299470 10006	oa	to
Ttottowa	TSE totesM	77H7JS	77212B	774070	879571 31/308	544X85 1/998	ra	01
boom mototfata/ap bed ted tempt upas massed bkbg pasUaaa aa tuck al paSHm napanr testes
mu	FT/SBP WBMS	M	31055	30950	31851 6/109	24236 5/1008	m	na
	us dpuns	1 169-3“	11633	11589	110550 6/109	88650 12/1/98	IB	«
CB09S-60HSIDJ Star 50	asnaao	349629	352735	387082 20/706	X3347 8/1009
	DJEmSbSD	348354	3495.43	353654	36B53S 6/109	241021 W 008
	R5E E300	(4	123251	I2412B	1327 JB ay? 08	ms, sno06
	FISEE1M	«	3D574	285046	306891 20/706	2MUI 8/10/96	IB	IB
	HSBCftgi	U	22J38	21036	27391 26000	16171 5/1008	na	na
	MG tag Emg	11636	11655	11449	12112 77109	8854 11/9W	na	IB

-Sarue town uatad puce 6421 33 §6HoM tTMW Mim*«uaMMfetJE™««mtaiinkite lira - lai+ro*. i Cawm - Cfcuad * Ki» Ota • Esewmo an*, t mo* pa u*h. m TmwotAa. ttoi 01 art bwi tanU ftf* Mpw "Me 1 m m wM, U»M1> Ip* h am a* pm te n* f U> ta m naoaaoi i *** arc m. Xa ****** ac cosawa Toa Uatut wte * Man

1 wnagw d a* hpa we M pkw rug we am In nta me 1

twe Ksai un HU re Umb nvMM la MpM annoww wtan np n

THE NASDAQ-AMEX MARKET GROUP 4 practise Mstti 9

tatanE

AAnCp

Maas

UCM

me.

mrm

AdrUpn

NStaAl

AftwBi

wow

Abo MB

Npwkd

Ufidd

■n

tetue,

AnFiwp

ritekOr

taM4 tana h

AtaMM

Me*

*ri*

Ad M3k

M1CI

toetJ

HUB

UtlT

bdtfind

KA»

80 tod 80 led) BBUen 1

BtaL f Uta Uh taw IM

A (A « aft a ztt zM »)i a1* 42*8 ta5* "A est *1*2 ®**a

<7«» 47ij

ift i»A i>A *t 4,1 «A lDt IDA WA »*« TU SA 1A i8*i u*i St 35>l 20 19,1 39-t «'2 SS4 left s »% 7% 2,a S*P i&A 17(1 ivA it fli it *DS 56% 57H 2DW 623 21*| 2B% 20*2 2015 3% J*f 3A

aim mt 123,1 123B IB «76 b«A 15t T6,'t a 5SB 37U at iat 2 » 9 1» 74% 73t 7*t

*1 7*D 3**2 St 3ZH

3930471 «OB ECt B’* 33S m.X 9t 9%

zi raw

3848 T7358 5111363 B37 54 19

026 33 IB467 IB 604 IS IIS OS 0 1007 OJB 0 11« 024 14 921 081 13 316 OJB S 257 0J2 a >371 0» w 21s

IT 2HB

a r» S 71 313

tafcncp

rite**

tanU

■fia

ApnatG

010	200	ft	4%	4%	+%
026	17 55	34%	33	34	+%
040	13 892	13%	»%	U%	+i
	n 7778	0%	O	13%	ft
021	1213	ft	6%	ft	■A
	4a ma	11%	ft	1ft	-A
		PA	54%	58%	-4%
	2tEU	34%	aft	34%	ft
nag	15 AS57	28%	25	aft	+1A
	7 9	*%	«%	0%
024	10 BIG	ft	bA	ft	+%
144	9 402	,,	HA	HA	■a
	9 DU	ft	7A	7ft	-4
044	11 UE		B%	15%	ft
	268	5%	4fi	s%	■A
	913	ft	3%	ft
	30067	M	80	83A	+1%
	3321OT	4P%	39%	9H 1	■a
	11 1734	ft	74	7%	-A
	J7W1	127 ft 119%	122%	*»A
	39588	19	17%	ft	ft
	M23S	%	ft	■	■A
024	20 A8B8	42	46%	40%	■%
	15 2061	91%	30%	38%	*h
	81	7%	7%	T'i

Th « -A «B « -i

»% 2ft ■% ZJt 25% +1*2 1^1 +'2 27% 27% -A 22 24% «2%

1H2 20% +A uA A 5% 5t

*3 2ft 2ft i*a

Z7*.

24%

2ft 15 > E

*ii _ „

ih ui *fi 12% 12% 0% 2ft Bt 2ft

uxim * bWIO	940 15 1101	27	25%	a	-8
MGn	Oi2 10 IS	11	«%	ft
She-	}i 407	9%	6%	»%	■%
Gogri	67 91860110%	107%	w%	-1
toad	012 32 J257	3ft	38%	aft	*A
BBaotgt	127 17 N	58%	37%	37%	-1
EK State	3026SZ7	42%	4ft	41%	+A
Btatas	036 15 WB	2ft	w%	2ft	■H
BtoiaB	21 m	26*1	27%	27H	+S
Babd	H 2603	ft	4%	4%	■%
BD0\|O>	0» 31 B3	Z3%	2ft	2ft	-A
Bon	309 2501	63%	90%	52	■%
BSE Baa 1	in n isfi	26%	»A	ft
Btada	» 2668	ft	8%	E%	-A
BbBwr	23 UB	24	22%	22%	■1
	020 11 IM	14% *13%	13%	-%
Can Op	17 .1130-	u	0%	«%	-%
CdMew '	B7I	10%	9%	ft	•%
CMfldf	5815129	H% 22“	24	♦1%

cnaet

US.

E BBS

■M

Stedi

DU.

toot

to*

lav

Lad

0*8

It 138

FaoenJi

1(62

37%

3S&

35,1

■ft

8 1257

-A

WThd

10%

70A

♦»A

S 474

21%

23%

♦%

Hear

449

a 222

9ft

♦i%

Futon

633*

»%

ift

«A

BBS

2D 1396

15%

>ft

FU5K

056

<382

18%

1ft

etc

« IBB

»% ai7%

17%

Mlferat

039

5M2

41%

3ft

4ft

-1

1664

12%

1ft

-,’i

Fcmot r

2774

27%

2ft

27%

+1!

w n

Fam

52%

»A

-1

152176a

43%

«>,

4ft

ftosto

SOI

-ft

isa

13%

Ift

FtnUi

air

9312

-A

27439

5ft

*7%

ABi

-14

FcwOBi

017

498

9fi

It »

FflRSf

2E3C

Wft

-A

056

16 4241

30%

2ft

30%

Foster ft

9690

Ftaaie

050

223

«A

47%

«A

-A

51 12127

22%

21%

»A

Fauna

275

22%

9 98

25 9033

37U

3ft

sea

022 54 3KB 73 71 71% -»*S

027 16 tZDB l7b IT*» 17,t +A

811 44 7% H -t

T2HGSC 108 1H% DBA +t

H TWO 9Bt ■,*« 888 -a&

SB Id 1% Id

MU n n st s% 57\ +t

50 3ia 24,1 2JU ZS3 -A

a 957 rft Z?i 22a +1H

21 so 1S3 tft 03

19 4217 1ft 15*1 1ft -A

aw a SJ94 41A »t 40A +A

a 30a 71A 7ft nt -*1

(UN 2710917 73% 7ft 73d ■%

■ oa W 525 41% «a Alt -A

■ 488 3ft 31% 3ft +1%

79 6371 B 25A » 2ft +A

3 m 3A s s ■%

3417047 n 78A 81% «ft

$1 SIB 33A »A 35A ft

5,1133 104% 22% 23%

an £ tan sft eft ai A

700 <A 1710047 ft 056 11 a >6

4217829 071 694 fft

IBM Kfl

058 9 » 134 433 2*:

50 205 17V

18 8« Zfl

an m v

13*2 12% 0%

ft ft 38 -A ift lift wa ft

5B% 46,1 49A +3A

ft ft ft

42 37 3B,«

42% "‘i HA "A

1ft »ft

41% 38 - .

3ft 3ft 3ft ft tat 42A 43% ft 3ft 3ft 38 +1% ft 3A 3% ft 3ft 3ft 37% *1*1

ft ft

ISA Hi - - ft ft ft ft 948 « 34,1 ft

15% US

15 ft 3ft ft

* A ft

15 ft

FefC#

■%

_ ft ft ft ft

1384 0% ift H% ft

■MBS >17 111% 113% +t 26 8896 B5«t «A 5ft ft

» 11 S ft ft

is 70 8% B 8

p 798 1% 8% 8% ■%

17 51 84 6 fft -4

as a 215 ,»t I3t 1«1 +4 W A 9t +t

»i A	■4	Msfliq		13 30G9	1ft	17%	12%	-ft
i&	ft	toodt	850	B 891		11	11%
sA	ft	Mode		11 779	ft	0%	8%	+A
SU	♦%	todta	mo	ia ua	3	H%	24%	■%
90%	+%	am	050	a 3062	32%	31%	31%	+%
<03	♦S	iunGa		9 42	4&	<A	«A	•A
12B	-A	HteMTU		10163	35%	31%	a%	■2%
2%	♦A	taoflwE		86	1%	14	iA
17%	ft
		ms*	013	to	5%	5%	5%	-%
26%	ft		30 201	ft	BS	8%	■%
11		tan		2260	B0%	VS	13%	+%
444	■14	HBh		57 777	1	7%	7%	■%
29A	-4	ta		32863*	ft	ft	ft	■A
24	+%	tdmt		279BO	7ft	71%	nA	+%
6%	ft	tVKtoS	IB	46 197	12%	11%	11%	■A
ft	+%	mtgfte		4028	BA	50	8	■ft
374	-a	tofts		« 887	KA	1ft		♦A
7%	+%	■d	824	STSSflBS	KNAllft	H5A	Jft
SA	«A	Mr Id	004	51 738	n	17%	17%	ni
aft	-A	RefieA	OT8	It 3B9	ft	ft	9%	■%
ft	+%	tolft		4976	6	ft	ft	ft
isA	+A	Mendt		54 390	12%	ni	n%

Ml E 93 834 *2tf

OS 15 513 23% 234 623 36 415 68t 57%

2ft ft

58% +1

15 a so1] if% at

3EK 18011743 72% 7ft

11 a 7% 7% 7%

13 272 th 7%

456 eO% 42% 43%

UB*

UP Fob

1+nB+rtl

|IU

an	S	908	s%	Z7%	38%	ft
aa	14	IBS’	M	20%	26%	ft
an	11	»7	11A	h£	11%
012	23	781	(ft	a	54%	+1%
OH	16	671	13%	u	13	ft
882	10	384	25%	24%	2ft	ft
OH	1!	«98	«%	1ft	IE	■A
	roses	a	ssa	H4	•2tt
		7	6%	ft	ft
		JHB	7A	•%	IU	■A
		7170	27%	21%	MS	■34
072	17	US	11\	11%	n%	ft
	16	S	17%	17	17	ft
	17513	36&	>ft	3ft	ft
650	tt	un	9U	26%	2ft	■1%
098	»	588	H	1ft	U%	ft

n n

04*. E MO* MR taw

B75 :% 2ft UfeaS H X71B *4%

lengsPr 056 12 a 21% 21

lUtai Ell 2 <hU

Lsdtap 73 »71 2ft St

UOMom 34699 864% «

UHK 24 15 B>] 25t

len D 2156 35 S*

LtanrlBC au aim «t *5 072 14 61 51 51

12U45I 10t ft LDCP 5889

LW OH) 27 101 Lps K109

HOMS 7

QfiMrNS MB 7 Won* 1JM M WHBi m « OwNa

rr «e

Stedi	Ik. 1 to	to*	law	Lad Ctag
MCCM	240 B 3C6		44	44,‘i	♦A
Fadtofcp	024 55 IB	74	7%	7A	ft
mM4	IS 54	89%	68	B% tlA
me	17 372	77%	7ft	77% +1%
PigTi*	15 SOS	8(1	«A	BA	-A
FWteCa	a 405	57%		36%	♦%
PteBOl	XUM3	u%	«%	19 +1%
Pgd*t	036 5914745	44%	*ft	44A	ft
"totes*	050 5 12	10,1	10	w
PDtochl	663	j{	%	%	-A
FtetfiUI	ac is db	JB%	20A	»%	+%
PHtteHt	048 11 1500	IBS	18	w%	-%
Ports*	3BM105	»	18%	va	♦4
nmgg	270 1511	8,4	8A	8%
PETdtoT*	3610030	7%	7%	7%	ft
Mtst	66 1610	37%	1ft	37%	ft
ItewaTdl	431	74	7%	7%	ft
PteoCor	6714	5	4%	*11	ft
Pktode	2651	8U	8	84	•A
Ptotdta	31	1BA	1ft	1ft	ft
POOL*	012 I 1E6	7,4	7%	74	ft
to	296 1062	fl%	*1%	424	+U
plsw	2 SWJ	2%	ft	2%	ft
M	3 31	ft	ft	ft	ft
RraUta	030 12 W	»A	18%	Ift	-A
tank	1774	8%	7%	7%	ft
htteM	15 125	04	11%	13%	ft
FrttoHDa	990	5	ft	ft	+%
Otocral	461009 S89%	77%	7ft	+2
itanf	am	nS	1ft	IBS	ft
Orakkt	« 18405	45	HA	4*A	-i%
OHriW	38803	6ft	68%	eft	ft
*****	69 302	15%	i*A	M%	ft
totatate	4711	9%	s%	BA	ft
tom	8 1158	13%	dt3	IS	ft
toto	UD 18 3830	38A	86S	J7H	ft
RddM	1036	3	?a	3
total	1C 32 3*17	B%	H>2	«ft	♦1%

Utaf

Ota C TU Uh taw IM

111619 77% 1ft UK

026 12 /n I7t 19% 17%

noo 4,i 4A *A

oa 16 4573 4ft «s 45%

264 «S 4% 4%

12 1151 12A 11% 12t

tog	M	Ik E Ik	to*	la*	Lad
A	S*ta	5972989	n*4	074	MBA
ft	SstalD	23 <»	31%	39%	30%
♦A	sytahe	8015	8	7*2	7%
ft	Srawtet	26 3®8	IB	17%	174
	Sptar	028775 58	7%	7%	7%
*%	Swta	IDS 263	42%	41%	41,4
	snw»	a 6650	49%	«%	47%
ft	barite	010 2620	3%	3	3
-A	Sttorata	9 3100	«U	9%	ft
	lAwaFr	B« 23 2877	31%	33	SWi
■2	TBCCn	7 212	ft	5%	5%
♦%	mew	OX 58 1510	45%	44\|i	6
ft	to oat	030878	•A	68%	®A

6 6891 17% 1ft 17

120 12 47 44% 43% 48%

C 1511221 T2t 1lA tlA

MB >1114488 5ft St 59*1

I 89 71 SO B7 94% 84%

CP On 3174 2% ft ft

1 022 37 2361 Aft 43,1 <3%

-f.

-% -7 A -% -t

•a

■a

■ft

♦ft

■A

taka 7006

30om W021

7if m

TJmX 02] 13 BU

1MHU on 11 19

Wqphr 026 18 196

TmBBWI 1539

W d

IqUEB OJB «M9

9 1965

lawwmt 687

194 B 277

n n e»

TnasOK i.U S M7B

46 4ft

as 2ft 2 >S 22% a 7% 7A 62 51% 12% 11% >3 U 4% 4t 13% 0% 1A It 23% 28%

ft 7% 1% I

77t at

47A +«A »% -% IS ■% 224 -tt 7ft -ft

52 +%

12A +A

Aft

>2%

28%

77% +t

•TO 38% ■% J7% -h I 319 Wt 415% 15% -!1

mm	ft M Us E U	to* Uw	lad tag
	018 X 286	38% 38%	38%	ft
■m*	260 30 337	68 67	87%
ISEmv	2*	33 3%	ft	+ %
usnp	1182	4% 4%	4%	♦ft
os in	BBS » IWO	79% 77%	78%	+1
OSMM	15014288	S% 37 A	»K	-a
nsrcoqi	080 16 1287	HA aft	21 A
itefldn	050 18 32	107 W1%	108	♦<
ua>	388	7 <U	<H	♦A
itan»	025 12 525	18% 12%	12%
togm cm	8 2113	28% 284	»%	ft
tan	O b Z28	H4 Tift	21,4	ft
totagi	XOUAMSh 114% 123(1	+4«
toitSkf	72 47S2	8JA 79%	n	-2
tar	32 *80	124 12	12	ft
*****	81 417	16% 15%	18%	ft
total	7D2Z7D5	51% 484	*7%
■LSIte*	4817128	«ft M%	<84	ft
taoB*	055 21(8	26% 28,4	26,1	ft
80 L	2273	ZZ% 22	22%	ft
WMtrinh	a *3?	4 3%	4	ft
totadts	#35 C 628	H% 134	134	ft
MMD	man	77% 284	2ft	+%
Vtforfii	OIO 14 30ES	17% 17	17
tons Era;	DM U 1083	M% 32%	w%	■1%
*Wa»	16 1449	27,4 25%	2ft	■1%
mss*	a TO	87% a	384	■ft
	9 amt	15A 1ft	M	■1
VfeUBOLS	828 12 70	h3 12%	u%	+%
totab	058 14 2038	133 124	124	ft
wm	038 34 270 1*8% 87	H% +sa
	4821400	81% 78%	774	-iH
Plod	M not	38% 39%	374	+4
XtaOnp	3723	3% 3	3%	+%
too	72763940	173163%	®A	4%
rtaow*	3*21	19 18% IBfi
IMRsa	S 441	5% 4%	4%	ft
ZbnUtei	056 H 2212	67 59%	®%	-1%

AMEX

4 practise tint! 9

		H	M
tenet	Bte.	E	Uk	to*	Uw	tom
rtaCart			5M	8%	g	9%
Demotes		U 1117	MS	£	144
Estate			35	SI	2% 124
Item		16	53	B%	12/g
ratio*		88	52	12	11^	11%
itumap		S3	44		lD^	70%
Unite	1.TD	3 UBO	7%	7%	7%
is at*		U	238	42%	41H	42%
is Bust			822	nti	10%	10%
toad toad MR		HO E7 BOSS 24 72	■A i	Si SA	15
Kmftei	I.U	17	5	3(1	331	HE
■nep		53	311	27%	28%	26%
mil	l.a	14	118	11A	11	114

ble

sate. Since

has been of which ire prores- ther shift e.

is going

• Novotny.

J does not

• for a pru- t present ie next 10

U initially about -wo reaction uding a n unit. By contribute iJion. perts are e armed ■ substan- a time of

idget was to 1.9 per ■Stic prod- mi. and is cent next

of this is in nel and there is v procure- v as the nitted to 72 domes- -1S9 light the next

-7

	lf$F in Brazil
	Scheme to restore confidence
	actually undermines it
	Martin Woffs Page 12

STOCK MARKET DANCES Nm York: LunchUm		GOLD New Voric Comex	„_S292.4	(291.7) £89.55
Dow Jones mo av — NASDAQ Composite	...242357	1*25.95)	London:
Swope end Far Eaat	(-■8-17)
	_47S8A3	(-3023)	(tear Yocte LuncMfena
	...6237.7	(+J3L8)		,—1.6185
	-1239.35 .1S09fl.ro	(+6-84) 9317 MSI		09189
NBdcai	SFr	1.4873
US LuncMfena RATES			121.1
3-frth Trees BBjkYW			1.0148	(1.6076)
	as ft			_._OB185	(09188) ft. 4638)
VtaH	_A582%			1.4849
OTHER RATES		AiW (100.73)		1 21.37	(121.825)
UK: 3-fno Interbank _	sh* —109.24	Tokyo Owe		Y 12135
Euro Eurtoor Germany: 10 yr Bieid Japan; 10 yr JOB —	97.11	(3.093%) (97.65) (101 .369)	EURO (Lorttonl S	1.0888 —0.8742	(1.0883) (0.6769)
		—132.42	(132.635)
Fn/iftlH UM. if'i’ij Brent Owed —	3&U7	(11.535)	SFr —	1-5949	(1.5931)